Join 10,000+ Kyiv Independent members today Support our reporting
Skip to content

News Feed

Friday, March 31
Friday, March 31
2:08 AM
Turkey ratifies Finland’s NATO bid. Turkey’s parliament voted in favor of Finland’s NATO accession on March 30. Turkey was the last country in the military alliance to approve the bid, clearing the way for Finland to become a NATO member.
Subscribe to Ukraine Daily
Top News
in Your Mailbox
10:37 PM
Russia shells Kharkiv. Governor Oleh Syniehubov reported that Kharkiv Oblast, including the regional capital, is being shelled by Moscow from Russia's Belgorod region. At least six explosions have been reported in the city.
5:32 PM
Russia to chair UN Security Council in April. Russia will lead the UN Security Council in April, AFP News Agency reported on March 30. Ukraine's Foreign Minister Dmytro Kuleba called the move a "bad joke", adding that the world "can't be a safe place" with Russia as head of the UN Security Council.

watch us on facebook

Edit post

Report: Companies get credit for leaving Russia while failing to do so

by Thaisa Semenova June 28, 2022 11:24 PM 2 min read

After Russia began its brutal full-scale invasion of Ukraine on Feb. 24, many multinational companies have announced that they are voluntarily curtailing or halting their business there. Some, like Nestle or PepsiCo, were pressured into making the decision after facing pushback from their employees in Ukraine, customers around the globe, and investors.

On June 23, the U.S. clothing and footwear manufacturer Nike became the latest brand to say it’s going for good, after at first taking temporary measures.

Foreign businesses receive reputational gains for exiting Russia and thus stopping funding its war by paying taxes in the country.

However, not every company that claimed to pull out of Russia entirely did so, according to a June 28 report by the Moral Rating agency, an organization focused on tracking companies’ response to Russia’s invasion of Ukraine. The agency was founded shortly after Feb. 24 by Mark Dixon, who runs the mergers and acquisitions consultancy Thinking Linking in London and New York.

The agency rated the level of exit of the 114 largest corporations in the world that had ties with Russia as of Feb. 24. They received the rates from one to 10, with 10 meaning a complete exit. Measured activities include exports, imports, and partially or wholly-owned assets.

According to the report, only 6%, or seven of the 114 companies have entirely exited Russia. They include e-commerce giant Amazon and conglomerate Alphabet (parent company of Google and others).

The majority, 55% of the corporations, made a withdrawal that either covered only part of the corporation’s Russian activities, or was not completely realized, or both. The rest, 39%, made no exit announcement at all.

Most are in ‘gray zone’

The agency says that 63 of the 114 analyzed companies are often viewed as being fully out of Russia while they have only achieved “some degree of withdrawal.”

Among others, the report mentions Siemens continuing to serve existing clients, Meta (previously Facebook) still selling ads locally, General Motors retaining employees in Russia, and Microsoft “supporting schools and hospitals.”

“The companies don’t just fail to exit properly. They often also exaggerate or spin up their paltry efforts,” said Mark Dixon, the founder of the Moral Rating agency, as quoted in the report.

The organization said there were some loopholes that corporations could use to avoid fully leaving the Russian market. For example, a company could commit to a sale of a Russian company or asset without mentioning any timeframe for it, meaning it may not materialize.

Also, an activity in Russia may not be mentioned in the companies’ statements, allowing them to keep operating “something that is often economically more significant than the announced closure.”

“By avoiding the spotlight, they can keep their customers and shareholders in the dark, while they keep earning from Russia and while Putin’s regime benefits from the other side of the transaction,” said Dixon.

We serve no one but our common values
“We truly need popular support, especially during wartime. Being not dependent on a single money bag telling journalists what to do has always been quite a task in Ukraine. In wartime, that’s even more important.”
Illia Ponomarenko, defense reporter
visa masterCard paypal

Editors' Picks

Support us


Please, enter correct email address


* indicates required
* indicates required


* indicates required
* indicates required