H&M, Oracle and video game maker EA add to corporate condemnation of Russia

  • Oracle shuts down operations after Ukrainian official tweets
  • US and EU roll out new sanctions, focus on Belarus
  • Automakers struggle to get enough parts from Ukraine

March 2 (Reuters) – Netflix, fashion store H&M, technology company Oracle and many others halted or suspended operations in Russia on Wednesday due to the attack on Ukraine, while the United States imposed new sanctions and that a Ukrainian official told Reuters about plans to stoke corporate support.

Netflix suspended new projects in Russia, Variety reported, while H&M suspended all sales there and Oracle said it suspended all operations.

Oracle’s Twitter announcement came about three hours after Ukraine’s digital transformation minister tweeted the company for help. Deputy Minister Alexander Bornyakov told Reuters that Ukraine had asked for help from 50 different companies, as part of a strategy to isolate Russia and turn citizens against their government. “More sanctions imposed, faster peace restored,” Borynakov said. Read more

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The United States extended those sanctions on Wednesday, imposing export controls on Belarus, the base of some of Russia’s attacks on Ukraine.

The new sanctions also ban the export of specific refining technologies, making it more expensive for Russia to upgrade refineries.

“The United States will take action to hold Belarus accountable for allowing (Russian President Vladimir) Putin’s invasion of Ukraine, weakening the Russian defense industry and its military might for years to come. come, to target Russia’s most important sources of wealth and to ban Russian airlines from US airspace,” the White House said. Read more

The European Union has also extended its own ban to 70% of Belarusian exports to the bloc. Read more

In recent days, global brands such as Shell, Apple and Boeing have severed ties or halted sales to Russia, often with outspoken condemnation of Russia’s invasion of Ukraine.

Moscow, which has called Russia’s actions in Ukraine a “special operation”, reacted to the growing exodus of Western investors by temporarily restricting sales of Russian assets by foreigners.

However, the list of goods, consumer and industrial, which will no longer be sold in Russia grows longer every day.

Winter apparel maker Canada Goose Holdings (GOOS.TO) said on Wednesday it would suspend all wholesale and e-commerce sales in Russia, while video game maker Electronic Arts Inc is pulling Russian teams from its football game “FIFA 22” and “NHL 22”. “hockey game. Read more

The measures taken by the West caused the ruble to fall and forced the central bank to raise interest rates. They have also made it impossible for many companies to do business in the country.

Mercedes-Benz Group (MBGn.DE) said on Wednesday it would suspend exports of passenger cars and vans to Russia as well as local manufacturing, following similar measures but from global automakers such as Ford and BMW . Read more

NO BREAK

Since the fall of communism, Russia, and especially the younger generation, has embraced global brands, foreign travel and social media. Its growing economic isolation risks reversing some of these changes and cutting off an important market for international companies.

Signaling there would be no respite from the West, US President Joe Biden said in his State of the Union address on Tuesday that Putin “has no idea what’s going on.” ‘comes’ as he joined European states and Canada in closing US airspace to Russian planes. Read more

In the aviation sector, General Electric Co announced on Wednesday that it has suspended support for airlines in Russia. Read more Boeing had suspended the maintenance and technical support of Russian airlines the day before, while its rival Airbus interrupted deliveries of spare parts, hampered the industry in Russia. Read more

On the supply side of the market, automakers such as Volkswagen (VOWG_p.DE), BMW and Porsche are struggling to secure crucial wiring harnesses as suppliers in western Ukraine have been shut down by the Russian invasion, forcing them to reduce their production. Read more

“Due to supply bottlenecks, disruptions to our production will occur,” BMW said in a statement. “We are in intensive discussions with our suppliers.”

And video game maker Motorsport Games Inc said sanctions against Russia could delay the release of the racing game developer’s future titles because a significant portion of its development team is based in Russia.

Meanwhile, Russian companies have felt increasingly pressured. Sberbank (SBER.MM), Russia’s biggest lender, said on Wednesday it was exiting the European market because its subsidiaries faced large cash outflows, adding that the safety of its employees and assets was at risk. threatened. Read more

Regulators, meanwhile, are bracing for a possible shutdown of the European branch of Russia’s second largest bank, VTB Bank (VTBR.MM), due to the impact of Western sanctions on the bank, sources told Reuters . Read more

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Reporting by Nick Carey, Christina Ammann, Tim Hepher and Reuters bureaus; Written by John Revill and Peter Henderson; Editing by Jan Harvey and Nick Zieminski

Our standards: The Thomson Reuters Trust Principles.

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