Dozens of major companies still remain in Russia despite invasion of Ukraine

Yale University says more than 300 firms have exited country but around 40 remain

Coca-Cola, PepsiCo and McDonald’s may now have suspended their operations in Russia, but dozens of major companies still remain in the country despite its unprovoked attack on Ukraine.

Yale University professor Jeffrey Sonnenfeld and his research team at the Yale Chief Executive Leadership Institute have been publishing a list of major companies who have stopped doing business in Russia, and the businesses that have so far remained.

Mr Sonnenfeld says that more than 300 companies have now left Russia, but around 40 are still operating in the country.

These include Bridgestone Tire, Caterpillar, Citi, Herbalife, Hilton, Honeywell, Hyatt, Intercontinental Hotels, Kimberly-Clark, Marriott, Mars, Nestle, Otis Worldwide, Philip Morris, Pirelli, Timken and Whirlpool.

He told The Independent that the withdrawal of Coca-Cola, Pepsi and McDonald’s marked “the end” of companies doing business in Russia.

“It’s more than a gathering storm, it became a stampede today,” he told The Independent.

“Almost nobody wants to be on the wrong side of history, but you do still see some honourable companies that are on the wrong side, they are not doing it out of greed, it is a mindset that is stuck in a cultural time-warp, they are living in an era of Perestroika, they were great commercial bridges in that time,” he said.

Women walk in front of a McDonald's restaurant in central Moscow on March 9, 2022. (AFP via Getty Images)

“This is the end, the people there are hanging on for life, they cannot survive, it is a taint on the CVs, resumes and careers of the executives and board members of the companies that are staying there,” he added.

“They are hoping for a win-win solution but no, that is not what we are doing here, we are trying to tank the economy we are not trying to provide a smooth landing.”

A man rides a bicycle in front of a damaged by shelling apartment building in Mariupol, Ukraine, Wednesday, March 9, 2022. (AP)

The Independent has reached out to all the companies that remain on the Yale list as still doing business in Russia.

Otis, which manufactures elevators and escalators, said in a statement, “We are monitoring developments carefully and will continue to adjust our operations and procedures in compliance with applicable laws and in order to continue to best serve all of our stakeholders in this challenging context.”

Nestle said that the company had “halted all our advertising activities in Russia and we have decided to suspend all capital investment in the country.”

“As a food company and employer, we also have a responsibility toward the people in Russia and our more than 7,000 employees – most of whom are locals. We will continue to ensure a reliable supply of safe and essential food products to the local people in the country,” the company added.

Financial services company Citi, said they were continuing their “efforts to exit our consumer banking business in Russia. As we work toward that exit, we are operating that business on a more limited basis given current circumstances and obligations.”

Italian luxury goods company Ferragamo, said that they do “not operate directly in Russia. Its activities there are managed by a local distributor.”

Pizza company Papa John’s said it has now “suspended all corporate operations in Russia. It has ceased all operational, marketing and business support to, and engagement with, the Russian market, where all restaurants are owned by independent franchisees.”

Equipment manufacturer John Deere, said that “Two weeks ago, we suspended shipments of machines to Russia and then subsequently, Belarus. We continue to monitor the situation closely while we fully abide by U.S. and international sanctions.”

A Hyatt spokesperson said on Wednesday that the company had “made the decision to suspend our development activities and any new investments in Russia, effective immediately. “

Meanwhile InterContinental Hotels Group said that it was closing its corporate office in Moscow and “suspending future investments, development activity and new hotel openings in Russia.”

Whirlpool said that in Russia the company was “limiting production to provide essential goods for families who need our appliances to clean, cook and provide proper food and medicine storage in their homes.”