The international community has responded in force with the following Russia’s invasion of Ukraine on February 24 – with tough sanctions against the country and numerous Western company closures.
In recent weeks, everyone from Apple to McDonald’s have suspended their operations in the country as the outpouring of support for Ukraine mounts around the world.
But while the list of companies and brands pulling out of Russia grows by the day, there are still some notable companies that continue to operate there in some shape or form.
Some have remained open because they are franchises – run by local third parties rather than the companies themselves, while others have partially ceased operations but continue to offer limited essential goods and services to Russian consumers. However, only a few continue to work as usual.
Against this background, what western companies are still open and operating in Russia?
Which companies are still operating in Russia?
Note: At the time of writing this article, all of the below were still operating in Russia in a few yearsshape or shape. Given the fast pace of the situation, this can change at any time.
While McDonald’s has closed its store in Russia, Burger King’s 800 branches there remain open – although the company says it would be difficult to close them due to legal agreements.
“BK Russia is an independent company owned and operated by our franchisees in the country,” parent company Restaurant Brands International said in a statement.
“We have long-standing legal agreements that are not easy to change.”
However, the company has said it will donate profits from its offices in Russia to efforts to help Ukrainian refugees
Food giant Mondelez – which owns Cadbury as well as brands such as Oreo, Philadelphia, Toblerone and Alpen – will continue to supply basic products to the Russian market.
However, they have announced that they will limit their activities there and CEO Dirk Van de Put said: “We are reducing all non-essential activities in Russia while helping to maintain the continuity of the food supply in the challenging times ahead.
‘We will focus on basic offerings, stop all new investments and suspend our spending on advertising media.
“We recognize that this is a very dynamic and very worrying situation that we will continue to assess and adjust as necessary.”
Although hotel giant Marriott’s hotels — which are owned by third parties — currently remain open in Russia, they are halting certain operations following a March 10 announcement.
We are deeply saddened by the appalling violence that is affecting the people of Ukraine,” the company said in a statement to metro.co.uk.
“We have supported and will continue to support humanitarian efforts through charities, our network of global partners and our own operations, including hosting refugees at Marriott properties in neighboring countries. We stand with all of our employees impacted by the war in Ukraine and have committed $1,000,000 to our Employee Relief Fund to support them during this tragic time.
“We have made the decision to close our corporate office in Moscow with immediate effect and to pause new hotel openings and all future hotel developments and investments in Russia.
“We have been closely monitoring the deteriorating situation in Ukraine, Russia and neighboring countries and remain in regular contact with our teams on the ground as we work to comply with sanctions and applicable laws. Our hotels in Russia are owned by third parties and we continue to evaluate whether these hotels can remain open.
“We regret the loss of life, the far-reaching impact on millions of innocent civilians and the humanitarian catastrophe in Ukraine. We strongly support those who work for peace and an end to needless suffering.
Unilever has suspended all imports and exports of its products to and from Russia and has halted its advertising and media in the country – but like other companies it will continue to supply Russians with essential goods.
“We have suspended all imports and exports of our products to and from Russia and we will stop all media and advertising spending. We will not invest any more capital in the country, nor will we benefit from our presence in Russia,” The company said in a statement.
“We will continue to supply the people of the country with our Russian-made essential food and hygiene products. We will monitor this closely.’
While many luxury brands including Prada, Burberry and Louis Vuitton have closed their Russian stores, Italian designer Salvatore Ferregamo remains operational.
A spokesman for the company said it “does not operate directly in Russia” and the business is “managed by a local dealer.”
It has been reported that about 1% of the company’s revenue comes from Russia.
While PepsiCo has suspended sales of Pepsi, 7Up and Mirinda in Russia and has withdrawn from advertising and promotional activities, it continues to offer other key products to Russian citizens.
“Now more than ever, as a food and beverage company, we must stay true to the humanitarian aspect of our business,” the soft drink giants said in a statement.
“This means that we are responsible for continuing to offer our other products in Russia, including everyday necessities such as milk and other dairy products, baby food and baby food.
‘By continuing our operations, we will continue to support the livelihoods of our 20,000 Russian employees and 40,000 Russian farm workers in our supply chain as they face significant challenges and uncertainties.’
Pepsi’s suspension of certain products is said to be of tremendous importance – given that it was one of the few Western brands available in Russia during Soviet times.
Mars is another company that has suspended certain aspects of its Russian operations — like advertising — and donated money to the Ukrainian cause.
The company has also said it will focus on essential services – donating its profits from Russia to “humanitarian causes”.
Mars has been operating in Russia for over 30 years and we employ almost 6,000 people who have been an important part of our company for decades. We will continue to support them, but business as usual is not an option.” The company said in a statement.
“This is a humanitarian crisis and it guides everything we do. We have decided to scale back our business and will refocus our efforts in Russia on our essential role in feeding the Russian people and pets.
“All profits from our Russian business are used for humanitarian purposes. We have suspended new investments in Russia and will not import or export our products to or from Russia. Our social media and promotional activities in Russia and Belarus remain suspended.
“This is a fast moving and uncertain situation – if we need to take further action we will do so without hesitation. We reiterate our support for the innocent victims of this war and call for a peaceful solution. Our hearts go out to the people of Ukraine and all those affected by these terrible events.”
Like other big hotel chains, Intercontinental has suspended some of its business in Russia – but its hotels remain open for now.
The company has closed its corporate headquarters in Moscow and suspended investment in future hotels in Russia, addressing the move in a statement.
“We are deeply saddened and shocked by the war in Ukraine and our thoughts remain with all those affected by these horrific events. IHG is committed to caring about the people and communities in which we have a presence around the world,” IHG noted in its own statement.
‘We have long-term management or franchise agreements with independent third-party companies that own the hotels in Russia.’
- Other companies that continue to operate in some form in Russia
- nestle (essential items)
- Danone (essential items)
- Kimberley Clark
- British-American Tobacco (has scaled back operations)
- hilton (hotels open but new investments paused)
- Hyatt (hotels open but new investments paused)
- accordance (Hotels remain open, new investment paused)
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https://metro.co.uk/2022/03/10/ukraine-russia-war-which-companies-are-still-operating-in-russia-16251400/ Ukraine-Russia War: Which companies are still active in Russia?