Russia-Ukraine conflict: Report: 1000 companies have quit Russia | International News
The Russian invasion of Ukraine has unleashed an array of financial sanctions on Moscow. More than 1000 companies have already pulled out from Russia in an attempt to economically isolate the country.
However, the real question that comes up here is had all foreign companies in Russia stopped their operations in the aftermath of the Ukraine war as part of the sanctions? If not, how many foreign companies are still continuing in Russia, and what is the number of those that have made their exit?
According to a recent report by the Yale School of Management, almost 1000 companies have publicly announced voluntary curtailing of their operations in Russia to some degree. The report is in five sections with an A to F grade scale based on the level of curtailment by the company.
The Yale report is currently tracking nearly 1200 global companies that used to provide services in Russia. The list initially focused on large American companies with substantial exposure to Russia, but expanded overtime to include firms from around the world.
In the report, companies that have made permanent exit from Russia have been put under category A of the withdrawal band. There are roughly 327 companies, including some multinationals like Delaware Lufthansa, United Airlines, IBM, that have completely halted their operations in Russia.
Meanwhile, companies that have temporarily suspended operations fall under category B or suspension. Category C comprises companies that have suspended a significant portion of their business in Russia.
But not all companies that have paused new investments in Russia fall under category D or buying time. Category and category F companies are those that have defied demands for exit or reduction of activities in Russia.
There are roughly 247 companies that are yet to take any degree of action. A Washington Post report that cited details from Yale's list revealed that companies with curtailed operations in Russia have dramatically outperformed companies that did not.
According to the report, the total shareholder returns correspond precisely with the letter grades that were assigned to the companies. Those with an A rating, that is.
The companies that made a permanent exit from Russia have performed much better than those with the F rating.