Factbox-Corporate ties to Russia uprooted as sanctions tighten

Companies have taken action to limit, put on hold or exit business activities in Russia following a wave of sanctions imposed after Moscow’s invasion of Ukraine.

Below is a list of European companies that have announced plans to exit Russia or to curb activities there:

AERCAP

World’s biggest aircraft leasing company AerCap Holdings, headquartered in Dublin, will cease leasing activity with Russian airlines.

The company says about 5% of its fleet by net book value was on lease to Russian airlines at the end of 2021.

BP

BP is abandoning its stake in Russian oil giant Rosneft in an end to three decades of operating in the country.

BP received revenue from Rosneft in the form of dividends which totalled around $640 million in 2021, roughly 3% of its overall cash flow from operations.

DAIMLER TRUCK

Daimler Truck is planning to freeze its business activities in Russia with immediate effect, including cooperation with Russian truck maker Kamaz.

No more trucks will be built under the joint partnership with Kamaz, and no more components will be supplied to it, the group said in an internal memo seen by Reuters.

EQUINOR

Norwegian energy group Equinor will start the process of divesting from its joint ventures in Russia.

The company has been present in Russia for over 30 years, and in 2012 agreed to a strategic cooperation with Russia’s Rosneft.

ERICSSON

Swedish telecom operator Ericsson is suspending its deliveries to Russia as it assesses the potential impact of sanctions on its business there.

HSBC

Global bank HSBC is beginning to wind down relations with a host of Russian banks including the second-largest, VTB.

The bank has little direct exposure in Russia, with around 200 employees and annual revenues of $15 million in the country, against its global income of $50 billion.

MAERSK

Shipping group Maersk considers suspending all container bookings in and out of Russia in preparation for sanctions and restrictions imposed against the country.

MERCEDES-BENZ

Mercedes-Benz Group is looking into legal options to divest its 15% stake in Kamaz as quickly as possible, German newspaper Handelsblatt reported https://www.handelsblatt.com/unternehmen/industrie/ukraine-krieg-daimler-truck-stoppt-kooperation-mit-russischem-panzerwagenhersteller-kamaz/28112486.html.

NOKIAN TYRES

Finnish tyre maker Nokian Tyres is shifting production of some of its key product lines from Russia to Finland and the United States.

Nokian produces approximately 80% of its annual capacity of 20 million tyres in Russia, where it employs around 1,600 people, a company spokesperson said.

ORSTED

Danish energy firm Orsted has stopped sourcing Russian coal and biomass for its power plants but will continue to buy up to 2 billion cubic metres of natural gas from Gazprom per year under a long-term contract.

Orsted also said it is not entering into new contracts with companies or using suppliers from Russia.

RENAULT

French carmaker Renault will suspend some operations at its car assembly plants in Russia next week due to logistics bottlenecks that have caused component shortages.

Renault is among Western companies most exposed to Russia, where it makes 8% of its core earnings, according to Citibank. It controls Avtovaz, Russia’s biggest carmaker.

SANDVIK

Swedish engineering group Sandvik is suspending its operations in Russia.

Sandvik generated around 3.5% of its 2021 revenue in Russia. The group has no production in the country but about 900 employees in sales and services.

VOLVO CARS

Swedish automaker Volvo Cars will suspend shipments of cars to the Russian market until further notice.