RUSSIA RAIDS MORE WESTERN COMPANIES
After Russia invaded Ukraine in February 2022, western companies working in Russia quickly found themselves under fire. Critics said that they were funding Russia's war through the taxes they paid to the state. Others argued that trading in, or with, Russia 'legitimised' the Kremlin's aggression – or implied that the Ukraine war was not a serious concern to the businesses.
On the other hand, there were costs to exiting a relatively large market. Without diminishing the gravity of the bloodshed at the beginning of the war, one can imagine business leaders thinking it would be over quickly and relations between Russia and the West restored. They argued they had responsibilities to their employees in Russia and could not simply abandon assets in the country. They also said, gulp, there were ethical arguments for staying: depriving ordinary Russians of essential food and medicine was not justified. The last argument was weak, since local or non-western foreign suppliers would surely step in, but still... the reputational cost of doing business in Russia might not be so bad, they pondered, and the risk of consumer boycotts exaggerated.
Such was the corporations' dilemma. Should they stay or should they go? A few dug in their heels; others announced they would exit the market entirely; more adopted a hybrid position, winding down some operations or investments whilst not fully pulling out. Yet for those companies that stayed put, the decision no longer looks like a question of moral scruples (or lack thereof) alone. It increasingly looks like a flawed business choice.
Going, going, gone...
