Russia's attack on Ukraine: The war puts these company leaders in a dilemma

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Flirt with the despot:

Austria's former foreign minister

- today on the supervisory board of Rosneft - at her wedding in 2018 while dancing with Russian President

Photo: ROLAND SCHLAGER / AFP

Business interests versus clear distancing from Russia and its war of aggression against Ukraine - this is how the dilemma in which numerous actors from politics and business are currently finding themselves can be described.

The most prominent example in this country is undoubtedly ex-Chancellor

(77, SPD), who has been criticized for years for his closeness to Russian President

(69) (whom he once described in a famous quote as a "flawless democrat").

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In the criticism:

former chancellor

Photo: Jens Schicke / imago images / Jens Schicke

Schröder is the head of the supervisory board at the Russian state energy company Rosneft and also holds management positions in the Nord Stream and Nord Stream 2 pipeline projects.

Last Thursday he called on the government in Moscow on the online network LinkedIn to end the war in Ukraine as soon as possible.

But there was no talk of personal consequences.

Instead, Schröder's environment is apparently becoming more and more distant from the former chancellor: according to media information, Albrecht Funk, Schröder's office manager and speechwriter for more than 20 years, is turning his back on his boss.

According to the reports, other employees of the SPD politician are also giving up their jobs.

Schröder is not the only ex-politician who now holds lucrative posts in the Russian economy.

Austria's ex-Chancellor

(76), for example, has been on the supervisory board of the Russian oil company Lukoil since 2019.

(57), former Austrian Foreign Minister, sits on the supervisory board of the Russian energy company Rosneft.

The pictures of Putin's visit to Kneissl's wedding in 2018 went around the world.

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Resigned from his post at Delimobil, a Russian car-sharing service:

Italy's ex-Prime Minister

Photo: Fabio Cimaglia/dpa

Neither Bowl nor Kneissl nor Schröder have left their posts so far - unlike

(56), also former Chancellor of Austria,

(47), former Prime Minister of Italy, or

(67), former Prime Minister of Finland.

The last three have resigned from their posts at Russian companies in the past few days.

Business as usual?

These top managers have to make decisions

The dilemma between business interests and political responsibility is not just for former politicians.

Numerous German companies do thriving business in or with the Russian economy.

They, too, are left wondering how to deal with the new situation in which Putin's Russia has emerged as a country that flouted international law, launched a war of aggression and is now becoming increasingly isolated from most of the rest of the world .

In many corporate headquarters, top managers are now likely to rack their brains.

Here are some prominent examples:

The retail giant

has been present in Russia since 2000.

According to its own statements, the Russian Metro division has opened 93 shopping centers in 51 regions of the country to date.

Metro employs about 12,000 people in Russia.

At the same time, Metro is also present in the Ukraine, where the group says it operates 26 stores with around 3,400 employees.

When asked by manager magazin, a spokesman for the company referred primarily to the concern for employees in Ukraine and their families, customers, suppliers and business partners there.

The spokesman announced that Metro is on the side of the forces in business and politics that are committed to a peaceful solution to the conflict.

"We also feel a responsibility to our more than 10,000 employees in Russia (in 93 markets) who bear no personal responsibility for the aggression against Ukraine," the spokesman continued.

There should be no speculation about possible effects on business in Russia.

"But of course we are monitoring and evaluating the ruble situation, our supply chains and the possible impact of sanctions."

Metro Russia is essentially independent from a business point of view.

Salaries and suppliers are paid through established international banks that are currently not affected by the sanctions.

"Most of the range is sourced domestically in Russia. We don't see any bottlenecks in this regard."

When

in 2019

, the astonishment in the industry was great: Lahrs rose to luxury brands such as Boss, Louis Vuitton or Dior - and now a "provincial company" in the lower price segment?

Lahrs had a clear target: double sales and then sell the company or list it on the stock exchange.

Part of the strategy there is also an expansion in Russia.

But how is it now?

"We are following the Russian invasion of Ukraine with incomprehension and dismay and our thoughts are with the Ukrainian population," said a spokeswoman for S. Oliver on request.

S. Oliver has already drawn conclusions from this.

Also as a sign of solidarity with the latest decisions by the German government, deliveries of goods to Belarus and Russia will be stopped until further notice, the spokeswoman said.

"Our partners are already informed about this step."

According to S. Oliver, he is now monitoring the situation and hopes to be able to return to a normal state of cooperation as soon as possible.

At the same time, attempts are being made to support refugees from Ukraine with clothing.

If there were an award for "Germany's most Russian company", then the agricultural machinery

from Harsewinkel in East Westphalia would probably be a candidate, writes the "Wirtschaftswoche".

The company has been producing combine harvesters in the Russian city of Krasnodar since 2005 and now employs 800 people there.

And among Russian farmers, the harvest workers from the factory in Krasnodar enjoy an excellent reputation, according to Viwo.

This is also due to the fact that Claas was recognized "as a national company" for a combine harvester line produced there, says Claas spokesman Wolfram Eberhardt.

However, Russia's attack on Ukraine is now jeopardizing the business of East Westphalia, which is active in both countries.

"In the Ukraine we are represented by a sales department," said spokesman Eberhardt on request.

"The situation of our approximately 40 employees in Ukraine has been our focus for days."

Claas is clearly out of the question of withdrawing from Russia – on the contrary.

"We are now using the remaining options to be able to provide Russian farmers with agricultural machinery and important spare parts with a view to the coming harvest," says Eberhardt.

"We are not speculating on further development and possible economic effects, as only theoretical considerations are possible here at the moment."

The oil multinational BP is selling its stake in Rosneft, while its competitor Shell is ending its cooperation with the Russian gas giant Gazprom.

This makes it clear how strong the connections of Western companies are in the energy sector, which is so important for Russia.

German energy companies are also active in Russia.

, for example, describes the country as one of its most important markets in which energy is generated and traded, and from which gas is also imported to Europe.

Uniper operates five gas and coal-fired power plants in different regions of Russia.

When asked whether decisions had already been made regarding the new situation since Russia's attack on Ukraine, Uniper initially gave no answer.

The oil and gas group

, headquartered in Celle, is also active in Russia and has been for more than 30 years, as the website says.

In western Siberia, for example, hydrocarbons are produced together with partners.

In addition, Wintershall Dea is involved in three gas projects at different locations in Russia.

A query about the effects of the current development on business initially went unanswered.

Wintershall Dea boss

(51) commented on the situation on Tuesday in a statement that the company published on its website.

"The world we live in is different than it was just a few days ago," he says.

"The Russian President is waging a war of aggression against Ukraine. There is war in the heart of Europe, I was and still am horrified and shocked. We sympathize with the people of Ukraine who are brave and incredibly brave in opposing the invasion."

Mehren is not committed to the future of business in Russia.

The foundation of the work in Russia was "shaken to its foundations," he says.

"Wintershall Dea's Management Board is already analyzing the situation very carefully, including the legal implications."

The energy company

has already come under fire in connection with Russia's attack on Ukraine.

EU neighbors like Poland are calling for the import of Russian natural gas via the older Nord Stream 1 pipeline to be stopped after the new Nord Stream 2 gas pipeline.

However, the supplier Eon, which has a 15.5 percent stake in Nord Stream 1, objects: "Nord Stream 1 is an approved and fully operational gas import pipeline," a company spokesman told the "Rheinische Post". .

"Overall, we see Nord Stream 1 in a regulatory way that is completely different from the ongoing discussions about the Nord Stream 2 line, in which we as Eon are not involved."

Nord Stream is also an uncomfortable topic for businessman

(66).

Warnig is CEO of Nord Stream 2 AG, a subsidiary of Russia's Gazprom.

Warnig, who was sanctioned by the USA in the wake of the Ukraine conflict, recently resigned from the FC Schalke 04 supervisory board.

US President

(79) announced punitive measures against the operating company and its boss Warnig last Wednesday.

The Treasury Department in Washington said business with the operator Nord Stream 2 AG must be terminated within a week.

The auto industry is also getting into trouble as a result of the war in Ukraine.

operates a factory in Kaluga, south of Moscow.

has just extended the expiring partnership with the Russian manufacturer Avtotor until 2028, the plant is to be expanded there for the equivalent of 350 million euros.

has had its own factory in Esipovo near Moscow since 2019;

Russian President Putin came to the opening especially to celebrate another direct investment by a foreign car manufacturer after years of recession.

On the other hand, there are suppliers in the Ukraine, from whom local manufacturers primarily purchase cable harnesses.

Because these are now no longer available as suppliers, some plants in Germany have already had to stop production.

So how will Volkswagen boss

(63) and his colleagues from BMW and Mercedes position themselves in the future?

That doesn't seem to have been finally decided at the moment.

A VW spokesman told “Business Insider” on Monday afternoon that business operations in Russia were “currently regulated”.

With regard to further developments and possible consequences for business activities in and with Russia, "a valid assessment is simply not possible at the moment".

After all, a car manager has already made a clear decision:

(62), head of Daimler Truck.

The world's largest truck manufacturer has stopped all business activities in Russia for the time being because of the Ukraine war.

According to Daimler Truck, it has been cooperating with the Russian truck manufacturer Kamaz since 2012, which it supplies with parts for civilian vehicles.

These deliveries have now been stopped.

"As a company, we stand for peaceful global cooperation," said a spokesman.

The company "categorically rejects" any form of military force.

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"That doesn't match my values":

football coach

resigns at Lok Moscow

Photo: Yegor Aleyev / imago images / ITAR-TASS

(52)

also shows that the topic is not just about politics and business .

The former Bundesliga coach resigned from his position as coach of Lokomotiv Moscow because of the attack on Ukraine.

"For me, football coaching is the best job in the world," said Gisdol to "Bild".

"But I can't pursue my calling in a country whose leader is responsible for a war of aggression in the middle of Europe. That doesn't go with my values."

Another German coach seems to have fewer problems with this: Gisdol's successor at Lok Moscow will initially be

(36), who used to play in Mönchengladbach, Hoffenheim and Leipzig and even made an appearance in the German national team.