June 23, 2024


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These American companies still do business in Russia

These American companies still do business in Russia

Starbucks logo and golden arches for McDonald’s It is dismantled in Russia Where coffee and fast food chains are withdrawing from the country across The war in Ukraine. But Russians still feast on American fare like burgers and pizza, with Hard Rock Cafe and Sbarro among more than two dozen American companies continuing to do business as usual in Russia.

27 US-based companies are defying calls to exit or reduce their activities in Russia, according to one trial. outcome Written by Jeffrey Sonnenfeld, Professor of Management at Yale University, and his research team.

While both Starbucks and McDonald’s have announced their complete withdrawal from Russia in recent days, Hard Rock continues to operate Hard Rock Cafes in Moscow and Saint Petersburg, Russia. The company, which was acquired by the Seminole Tribe of Florida in 2007, did not respond to requests for comment.

Another fast food supplier, American pizza chain Sparrow, is also to stay. Operating in Russia since 1997, the privately owned company signed a new concession agreement in the country in 2017 partners with Horeca Band Group and plans to open more than 300 restaurants in Sbarro in Russia by 2027. It did not respond to a request for comment.

According to Sonnenfeld, it’s not just about food chains. The owner of online dating services Match.com and its Tinder unit continues to do business in Russia, with the dating company executives saying in an earnings call earlier this month that it expects to lose about $10 million in revenue each quarter for as long as it lasts. Russian war in Ukraine.

“European performance was affected by the Russian invasion of Ukraine, which reduced revenue in Russia, Ukraine and many other neighboring countries,” said Gary Swidler, Chief Operations and Finance Officer at Match.

Match Group, based in Texas, did not respond to a request for comment.

Dating app Bumble made a different decision. In March, the social media platform She said It was discontinuing its operations in Russia and removing its apps from the Apple App Store and Google Play Store in Russia and Belarus.

Some of the companies that Sonnenfeld and his team have deemed among the worst offenders object to the idea that they are conducting business as usual because they have not pulled out of Russia.

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Lake Forest, Illinois-based Teneco, a supplier of automotive components, opened manufacturing facility in Togliatti, Russia, in 2003, and Emission station in St. Petersburg, Russia, four years later. The company now has four factories in Russia, two of which are out of order. “The other two have stopped contacting them and we have no information on their status,” Tineco said in an emailed statement.

It added that Tenneco is complying with international laws and sanctions and has suspended shipments across borders, with no entry or exit of raw materials, components or finished products into or out of Russia or Belarus.

“We remain focused on the health and safety of our people in Ukraine, Russia and other affected areas. We will continue to provide updates and do what we can to help our team members, customers and suppliers safely get through this situation as we hope for a peaceful resolution.”

Still in Russia

The following is a summary of the US companies awarded the “F” rating by Sonnenfeld for their decisions regarding their operations in Russia.

  • Embridge Hospitality. Hotel management company Plano, Texas, operates more than 1,400 properties in 49 states and 20 countries, including operations in Russia.
  • Alignment Technology. Medical device maker Tempe is based in Arizona this month Referred to The conflict in Ukraine is among the factors that could “negatively affect our commercial, research and development activities inside and outside Russia.”
  • Amdox. The Israel-based IT company is headquartered in Jersey City, New Jersey, and continues to “collaborate with Russian partners,” according to Sonnenfeld. The company described its exposure to Russia and Ukraine as immaterial and about 1% of revenue, CEO Choki Schaefer said in an earnings call on May 11. Amdocs is complying with US sanctions applied to Russia and has halted new sales of its products and services in the country. , He said.
  • Amgen. California-based pharmaceutical company The Thousand Oaks opened an office in Moscow in 2006, the company’s activities Currently It covers the entire territory of the Russian Federation, from Kaliningrad to Kamchatka, according to its website.
  • Avaya. The IT company still supports its Russian partners. Military conflict, sanctions, and export controls imposed by the United States and other countries “severely limit our ability to conduct business with Russian companies, organizations, and individuals in the United States,” the company She said in an organizational file. It expects to lose $45 million in expected revenue in Russia this year, and another $15 million as other countries change their priorities because of the war.
  • Cloudfare. The San Francisco-based security and web performance provider complies with the sanctions, but has decided not to terminate its services within Russia. Matthew Prince, co-founder and CEO of the company, “Russia needs more Internet access, not less,” books in March. “We believe removing our services from Russia will do more harm than good,” a CBS MoneyWatch spokesperson said in an email.
  • Donaldson Corporation. The manufacturer of industrial air purification systems based in Bloomington, Minnesota, continues sales to Russia.
  • Fleetcore. The Atlanta, Russia-based payment services provider for carriers has around 600 employees, and is continuing business as usual.
  • Forever Living Products. The privately owned multi-level marketing company headquartered in Scottsdale, Arizona still operates in Russia.
  • Huntsman Company. Woodlands, a Texas-based industrial chemical manufacturer, continues to operate in Russia.
  • international paper. Memphis, Tennessee in March She said may sell 50% Period in a major Russian forest products company, but it will continue its operations in the country.
  • IQVIA. The medical analysis provider in Danbury, Connecticut is still operating and actively operating in Russia.
  • Kimin Industries. Feed Additives Supplier in Des Moines, Iowa formed A Russian subsidiary in 2016 and still operating in the country.
  • koch industries Still working in Russia. Guardian Glass, a subsidiary of industrial giant Wichita Group, Kansas Working with its local managers in Russia To “create an exit strategy” that also ensures the safety of their roughly 600 employees, Koch President Dave Robertson told employees at note Last month.
  • Medtronic. The Minneapolis, Minnesota, medical device company continues to operate a subsidiary in Russia. company in April convicted Russia’s invasion of Ukraine said it would continue to support essential businesses that supply its life-saving and sustainable products. The company does not make new investments or start new clinical trials in the country.
  • Bakkar. The Washington-based truck maker Bellevue is still active in Russia. The company has halted sales of trucks and parts in Russia and Belarus to comply with international sanctions, and is managing export sales to the country through independent dealers and a third-party-owned warehouse, it said in a regulation. deposit. It sold 2,500 trucks to Russia and Belarus last year.
  • Riot Games. The company still operates and sells products in Russia.
  • Striker. An orthopedic device maker in Kalamazoo, Michigan, continues sales and imports into Russia.
  • TGI Friday’s. The company is still operating in Russia. Chain restaurants in Dallas, Texas in March She said It will donate franchise fees from its restaurants in Russia to relief efforts in Ukraine.
  • Titan International Ato. One of the largest manufacturers of off-road tires and wheels, the Illinois-based Quincy Corporation still operates in Russia. The company said in a regulatory statement that the company has halted investment in its Russian operations and is operating its facility in southwest Russia at low capacity to comply with international sanctions. deposit. Its Russian operations represented about 5% of consolidated global sales for the first quarter ended March 31.
  • Tom Ford. The New York-based fashion house opened its first store in Russia in 2011 and is still operating in the country.
  • valve company. The Washington-based technology and entertainment software company Bellevue behind gaming platform Steam is still serving Russia.
  • Zimmer Biomite. A medical device manufacturer in Warsaw, Indiana, continues sales in Russia. The company in March advertiser It has clients, distributors, and employees in both Ukraine and Russia, and has been focused on maintaining contact and providing support to all. The company condemned the invasion of Ukraine in a statement emailed to CBS MoneyWatch. “We currently continue to supply hospital and care teams in Russia,” a company spokesperson stated, with a portion of the profits from selling their products in Russia going to relief efforts in Ukraine.
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