Image Source: Global Finance Magazine
By: Michael Argenta
March 13, 2022
McDonald’s. Spotify. Netflix. Disney. Adidas. General Motors. Apple. Coca-Cola. The list goes on. As of March 10th, at least 52 major western companies have suspended sales and services in or left the Russian economy. This, of course, is the backlash Russia faces for invading Ukraine on February 24th. On top of significant economic sanctions from the world, Russia will continue to see companies leave the country.
Each country that has suspended business or left Russia has announced it is in support of the people of Ukraine. In addition, many corporations have donated money or supplies to the Ukrainian people affected by this conflict. Notably, Levi Strauss & Co., the American company known for its jeans, pledged $300,000 to nonprofits supporting Ukrainians. This situation has forced many companies to make tough decisions due to losing a large sector of their business, but executives have also faced backlash for continuing to operate in Russia. Recently, Uniqlo, a Japanese clothing company, reversed its decision to keep its Russian locations open. This shows the power of major brands shutting down and the situation getting more attention.
While these developments will cost companies and stockholders, it is easy to see why this is happening. With major economic sanctions and backlash against Russia, most of the world is backing the citizens of Ukraine. For most businesses, even a dollar is not worth harming human life. It will be interesting to see how many more businesses will follow suit and how Russia will respond.