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regular-article-logo Friday, 26 April 2024

More Western firms expected to pull out of Russia

MSC and Maersk suspend container shipping to and from the transcontinental country

Reuters London Published 02.03.22, 03:15 AM
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Representational Image File Photo

More Western companies are expected to pull out of Russia on Tuesday as corporations and investors across industries follow the lead of energy firms BP and Shell that abandoned their multi-billion-dollar positions after the invasion of Ukraine.

Leading banks, airlines, auto makers and more have cut shipments, ended partnerships and called Russia’s actions unacceptable. Many more said they were considering action.

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The world’s biggest shipping lines MSC and Maersk on Tuesday suspended container shipping to and from Russia, deepening the country’s isolation as its invasion of Ukraine sparks an exodus of international companies.

The moves by MSC and Maersk mean that Russia —the world’s 11th largest economy and supplier of one-sixth of all commodities — is now effectively cut off from a large chunk of the globe’s shipping capacity.

Luxury car maker Jaguar Land Rover, owned by the Tatas, on Tuesday paused the delivery of vehicles to Russia, saying the current global situation had presented it with trading challenges.

To stem the stampede, Moscow said on Tuesday it would temporarily curb foreign investors from selling Russian assets but energy firms BP and Shell have already decided to abandon their Russian businesses, while leading banks, airlines, automakers and more have cut shipments and ended partnerships.

Austria’s Raiffeisen Bank International (RBI) is looking into leaving Russia, two people with knowledge of the matter told Reuters, a move that would make it the first European bank to do so since the invasion.

French oil and gas group TotalEnergies said it would no longer provide capital for new projects in Russia, while Exxon Mobil has begun removing US employees working there, a person familiar with the matter said.

Paramount Pictures became the latest Hollywood studio to halt theatrical film distribution in Russia, announcing Tuesday that it would pause the release of upcoming films The Lost City and Sonic the Hedgehog 2.

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