Sony’s Playstations, Uniqlo attire, McDonald’s burgers. The list of global brands disappearing from Russian outlets keeps growing as some of the world’s biggest businesses, from energy to consumer goods and electronics, suspend operations in the country.
International sanctions, the closure of airspace and transport links, financial restrictions on SWIFT and capital controls have made it difficult if not impossible for many companies to supply parts, make payments and deliver goods in Russia. Added to that, the potential consumer backlash against any company perceived as supporting Vladimir Putin’s two-week-old invasion of Ukraine has turned the corporate exodus into a stampede.
The rout reverses three decades of investment in Russia by foreign businesses after the Soviet Union broke apart in 1991. Those that pull out could lose their investments. The Russian government is supporting a proposal by the dominant United Russia party to consider the sale or even nationalization of operations of foreign companies that leave the Russian market, according to Kommersant.