Russia boycotts: Companies withdraw from Russia and campaign in support

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Goldman Sachs told Bloomberg News March 10 That it is “closing its business in Russia in compliance with regulatory and licensing requirements.” It will be the first major bank to leave the Russian market.

Deutsche Bank, for its part, has no plans to leave Russia, its chief financial officer said March 10. “For practical purposes, this is not an option available to us,” James von Moltke told CNBC, “or the right thing to do when it comes to managing client relationships and helping them manage their situation.” He indicated that this could change the bottom of the line, however, as the situation on the ground develops.

Three “Big Four” accounting firms – Ernst & Young (YY), KPMG and PricewaterhouseCoopers (PWC) – have stated they will suspend operations in Russia in a show of support for Ukraine.

“In light of the growing conflict, EY Global will no longer serve Russian government clients, state-owned enterprises or authorized entities and individuals anywhere in the world,” the company said in a statement. “YY has begun a restructuring to separate its Russian member firm from the global network.”

EY joined KPMG and PwC, who said on March 6 that their Russian companies would leave their networks as part of a corporate move to shut down operations in the country after the invasion of Ukraine. The move comes amid a Western-led campaign aimed at Russia’s economy and its elites.

Deloitte, the rest of the Big Four accounting firm, said March 7 that it was “reviewing” its business and presence in Russia. The statement said, “We are aware of our professional responsibilities and changing circumstances as we review this.” “We will abide by all applicable sanctions; Deloitte does not serve any of Russia’s central government agencies. “

In a statement, KPMG said: “We believe we have a responsibility, along with other global businesses, to respond to the Russian government’s ongoing military offensive in Ukraine. As a result, our Russian and Belarusian companies will leave the KPMG network. “The statement said the companies employ more than 4,500 people.

“As a result of the Russian government’s aggression in Ukraine, we have decided that, under the circumstances, PwC should not have a member body in Russia, and that PwC Russia will leave the network,” PwC said in a statement. The firm employs 3,700 people, the statement said. In its own statement, PWC Russia said it was “leaving the network of PWC member organizations, but will continue to cooperate.”

Leading consulting firms have recently announced plans to exit the Russian market, including Accenture, McKinsey & Co. and Boston Consulting Group.

Meanwhile, Visa and MasterCard, two of the world’s largest payment networks, announced March 5 That they would suspend transactions in Russia.

According to the companies, Visa and MasterCard issued outside Russia will no longer work in the country. Cards issued by Russian banks will be cut off from networks operated by companies, but will continue to operate through a state-owned processing system separate from Visa and MasterCard.

Visa CEO Al Kelly said in a statement: “We are forced to act in the wake of Russia’s unprovoked aggression in Ukraine and the unacceptable events we have witnessed.” “We are sorry for the impact we have in Russia on our valued colleagues and clients, partners, merchants and cardholders. This war and the ongoing threat to peace and stability want to respond in a way that is consistent with our values. “

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