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These companies have a lot to lose from sanctions on Russia

2022-02-26T03:05:01.875Z


International companies with a significant presence in Russia will bear the brunt of further sanctions for invading Ukraine.


These prices could be affected by Russia's attack on Ukraine 1:21

New York (CNN Business) --

International companies with a significant presence in Russia are bracing for the effects of more sanctions from Western countries over the invasion of Ukraine.

Russia has already begun to pay the price for its aggression: The country's stock and currency markets plummeted this week after President Vladimir Putin ordered troops into Ukraine.

Sanctions from the United States and European nations intensified Thursday as leaders of those nations condemned Russia's actions.

  • The list of global sanctions against Russia for the war in Ukraine

Putin warned Russia's business leaders on Thursday that he expected more "restrictions" on its economy, but urged them to work "in solidarity" with the government.

These are some of the companies with a significant presence in Russia:

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Europe

BASF

German chemicals maker BASF is the co-owner of Wintershall Dea, one of the funders for the already suspended Nord Stream 2 pipeline, along with Russian billionaire Mikhail Fridman's investment group LetterOne.

The company claims that 1% of its sales come from Russia.

BP

The British oil company BP is the largest foreign investor in Russia, with a 19.75% stake in the national oil company Rosneft.

It also has interests in other oil and gas projects in Russia.

  • ANALYSIS |

    The Nord Stream 2 gas pipeline is relegated to oblivion by the Ukraine crisis.

    Because it is important

Coca-Cola HBC

The London-listed company bottles Coca-Cola for Russia, Ukraine and much of central and eastern Europe.

Russia represents one of its main markets and employs 7,000 people in the country.

danone

French yogurt maker Danone has a majority stake in Russian dairy brand Prostokvanhino, earning 6% of the country's total sales.

Engie

The French gas distribution company is one of five financiers of Gazprom's Nord Stream 2 pipeline.

Subway

The German retailer employs around 10,000 people in Russia, where it has around 2.5 million customers.

Nestle

The Swiss consumer sector company had six factories in Russia as of 2020, including candy and beverage production plants, according to its website.

Its sales in the Russian market in 2020 reached US$1.7 billion.

Renault

The French automaker has a 69% stake in the Russian company Avtovaz, which is behind the Lada car brand and sells more than 90% of its production on the local market.

rolls royce

The aircraft engine maker says Russia contributes less than 2% of its total revenue, but contributes 20% of its titanium, which it uses to make aircraft engine parts and landing gear.

saffron

The Russian company VSMPO-AVISMA is the largest supplier of titanium to the French jet engine manufacturer, although the French company maintains that Russia supplies less than half of its needs.

  • Russia's attack on Ukraine spikes oil and gas prices

shell

The Dutch oil company owns 27.5% of the Sakhali-2 liquefied natural gas project, which has an annual capacity of 10.9 million tons and is operated by Gazprom.

It is also one of five co-financers of the Nord Stream 2 pipeline.

TotalEnergies

The French oil company is one of Russia's largest investors, with a 19.4% stake in Novatek, 20% in the Yamal LNG joint venture, 21.6% in Arctic LNG 2, a 20% stake in the Kharyaga oil field and various holdings in the country's renewable energy, refining and chemicals sectors, according to its website.

Uniper

The German utility has $1 billion in risk exposure from the Nord Stream 2 gas pipeline project, as well as from five power plants in Russia with a combined capacity of 11.2 gigawatts, which provide about 5% of the Russia's energy needs.

It also imports Russian natural gas to Europe.

The Swift or the oil: sanctions against Russia that do not suit NATO 1:16

United States

ExxonMobil

The US oil giant has more than 1,000 employees in Russia and has been in the country for more than 25 years.

Its subsidiary Exxon Neftegas Limited has a 30% stake in Sakhalin-1, a vast oil and natural gas project located on Sakhalin Island in the Russian Far East.

The company has operated the project since 1995 on behalf of a trading company that includes Japanese and Indian partners, as well as two subsidiaries of Russia's largest oil company, Rosneft.

McDonald's

The burger chain sees Russia as a high-growth market and has continued to open stores in the country over the past decade.

Mondelez

The Oreo maker and owner of Cadbury became the leading chocolate maker in Russia in 2018.

These companies have suspended operations in Ukraine 1:00

Asia

Japanese Tobacco

The company employs about 4,000 people at its plants in Russia, and its tax payments in 2020 represented 1.4% of the state budget of the Russian Federation, the company reported on its website.

The former tobacco monopoly relies on the Commonwealth of Independent States, which includes Russia and Belarus, for about a fifth of its revenue.

Marubeni

The Japanese trading company has four offices in Russia, where it sells tires for mining equipment and runs a health center.

Mitsubishi

The company distributes Mitsubishi Motors vehicles through some 141 dealers in Russia and has a stake in the Sakhalin-2 oil and gas development project that supplies Japan with liquefied natural gas and markets coal, aluminum, nickel, methanol, plastics and other materials.

It also supplies equipment and other machinery for power plants in Russia.

SBI Holdings

The SBI bank, founded almost three decades ago, offers corporate services and loans to Japanese companies looking to expand their operations in Russia.

Toyota

The company's plant in St. Petersburg, Russia, manufactures the Camry and Rav4 vehicles, and has a sales office in Moscow.

Toyota has about 2,600 employees, including 26 Japanese at its locations.

Conflict Russia - Ukraine

Source: cnnespanol

All news articles on 2022-02-26

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