Special Report

These Are the Companies Refusing to Leave Russia

One of the most significant effects of Russia’s invasion of Ukraine, outside the warzone, is the series of sanctions the United States, United Kingdom, European Union, and other nations have imposed on the invader. The sanctions have hurt Russia’s economy and will likely drive it into a deep recession in the months, and probably years, ahead. (Russia is on the list of the most corrupt countries in the world.)

In addition to governments’ sanctions, a large number of international companies have pulled out of Russia completely — many of them at great loss. Some have left significant assets there or have broken global partnerships with Russian companies. BP gave up its ownership percentage of Russian oil giant Rosneft. The decision could cost it as much as $25 billion in write-offs.

Other corporate decisions have been highly visible but will not cause much financial damage to the companies’ revenue or profits. McDonald’s pulled out of Russia. Its locations there are a tiny fraction of its global total.

Among the most visible U.S. companies that have decided to keep most of its Russian operations intact is Koch Industries. The company is helmed by Charles Koch, the leader of one of America’s richest families and one of the best-known American conservatives. 

CNBC reported that over 24 U.S. lawmakers received campaign contributions from Koch Industries in the weeks leading up to Russia’s attack on Ukraine. This money, CNBC reports, “some ethics lawyers say should be returned given the company’s decision to maintain operations in Russia.” (These are America’s most hated companies.)

A highly visible leader of one of America’s best-known business schools has decided to track which companies have left Russia and which have stayed. Jeffrey Sonnenfeld, professor and senior associate dean at Lester Crown in the Practice of Management at Yale School of Management, has been one of the best-known business academics for decades.

To identify the companies that refuse to leave Russia, 24/7 Wall St. reviewed the report “Over 450 Companies Have Withdrawn from Russia – But Some Remain” updated March 28, 2022 by researchers at the Yale school of management. The companies on this list represent all entities listed in the Yale report under the category “Defying Demands for Exit or Reduction of Activities (43 Companies) (Grade: F),” pulled on March 28, 2022.

Sonnenfeld also commented on the results in an opinion piece in The New York Times, “The Corporations Passing-And Failing-The Ukraine Morality Test.” He argues that there is absolutely no reason companies should continue operations in Russia. So far, over 450 companies have withdrawn from their operations there. One reason for the list is to put pressure on the companies that have not left.

Click here to see these are the companies refusing to leave Russia

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