Since the Russian army’s invasion of Ukraine began just a few weeks ago, over 450 companies have announced their withdrawal from Russia. However, some companies have continued to operate in Russia undeterred.
Aldi, Asda, British American Tobacco, Fonterra, Sainsbury, Waitrose and many more are among the FMCG companies that are removing their products or suspending operations in Russia.
A research team at the Yale Chief Executive Leadership Institute began to conceptualize a simple “withdraw” vs. “remain” list in February, but their new list of companies now consists of five categories:
1) WITHDRAWAL – Clean Break: companies completely halting Russian engagements/exiting Russia;
2) SUSPENSION – Keeping Options Open for Return: companies temporarily curtailing operations while keeping return options open;
3) SCALING BACK – Reducing Activities: companies scaling back some business operations while continuing others;
4) BUYING TIME – Holding Off New Investments/Developments: companies postponing future planned investment/development/marketing while continuing substantive business;
5) DIGGING IN – Defying Demands for Exit: companies defying demands for exit/reduction of activities
You can download the current list as an excel spreadsheet here https://yale.app.box.com/s/11lqy1d3yn1kf9xa3r96k9sb6w5m4qea (make sure to “download” the file from Box as an excel document rather than “previewing” for best file quality).
The list is updated continuously by Jeffrey Sonnenfeld and his team of experts, research fellows, and students at the Yale Chief Executive Leadership Institute to reflect new announcements from companies in as close to real time as possible.
They explain: “Our list has already garnered extensive coverage for its role in helping catalyze the mass corporate exodus from Russia. When this list was first published the week of February 28, only several dozen companies had announced their departure.
“Hundreds of companies have withdrawn in the days since, and we are humbled that our list helped galvanize millions around the world to raise awareness and take action.
“Although we are pleased that our list has been widely circulated across company boardrooms, government officials, and media outlets as the most authoritative and comprehensive record of this powerful, historic movement, we are most inspired by the thousands of messages we have received from readers across the globe, especially those from Ukraine, and we continue to welcome your tips, insights, and feedback.”
Fonterra exits Russia
Fonterra has also announced it will exit its businesses in Russia. This follows the Co-op’s decision to suspend shipments of product to Russia at the end of February.
CEO Miles Hurrell says: “Our first step following Russia’s invasion of Ukraine was to establish the safety of the team in Russia, and our priority through this process continues to be doing the right thing by our people.
“We then suspended shipment of product to Russia while we assessed the impact of economic sanctions and discussed our long-term plans with our customers and joint venture partner.
“Following careful consideration of the impact on our people and our long-term plans for the Russian market, we will now close our office in Moscow, re-deploying staff where possible, and withdraw from our joint venture Unifood.”
Fonterra exports a small amount of product to Russia, primarily butter, totalling about 1% of our annual exports.
“Given the current strong demand for New Zealand dairy, we are confident in our ability to re-allocate this product to other markets,” says Hurrell.
Sources:
Yale School of Management
Fonterra
