Business

Uniqlo owner stays in Russia as Boeing suspends purchase of Russian titanium

Uniqlo owner stays in Russia as Boeing suspends purchase of Russian titanium

  • Uniqlo’s Russian stores will remain open
  • Danone suspends its investments in the country
  • KPMG, PwC, EY, Deloitte cut all ties with local units
  • American Express calls attack in Ukraine ‘unwarranted’

March 7 (Reuters) – Uniqlo owner Fast Retailing (9983.T) will keep its stores in Russia open, joining a small group of international businesses that are staying put even as dozens of big-name brands temporarily shut down operations or leave the country following its invasion. from Ukraine.

Political pressure is mounting on companies to shut down operations in Russia, while operations have also been complicated by sweeping sanctions affecting everything from global payment systems to a range of high-tech products.

Boeing Co (BA.N) said on Monday it had suspended the purchase of titanium from Russia because it had sufficient supplies for aircraft production, while its European rival Airbus (AIR.PA) said it was sourcing titanium from Russia and other countries in accordance with sanctions. . Read more

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Major shippers have suspended container routes to and from Russia and many Western companies, from Nike Inc and furniture giant Ikea to energy majors BP and Shell (SHEL.L), have closed up shop or announced their intention to leave the country.

Dutch tech investor Prosus (PRX.AS) will exit a $700 million stake in Moscow-based online platform VK Group, known for social network VKontakte, Russia’s answer to Facebook. VK Group CEO Vladimir Kirienko has been added to a US sanctions list after Russia invaded Ukraine. Read more

A spokesperson told Reuters the company has seen no noticeable impact on its supply chain or logistics in Russia, where Uniqlo has 49 stores.

“Clothes are a necessity of life. The Russian people have the same right to live as we do,” said CEO Tadashi Yanai of Japanese firm Fast Retailing, in remarks first reported by Nikkei, adding that every country should oppose war.

In contrast, Levi Strauss & Co suspended Russian operations, including any new investment.

Some US companies continue to operate in Russia, including McDonald’s Corp (MCD.N) and PepsiCo Inc (PEP.O), prompting the New York state pension fund – a shareholder in the pair – to urge them, and others, to consider suspending their operations. the. Read more

The dispute could create opportunities, including Europe overturning a ban on several Brazilian meatpackers imposed in 2018 after a scandal in the food sector, sources said.

“The (Brazilian) industry is ready to fill the gaps and support the food security of countries that may lack supply due to the suspension or probable reduction of chicken and pork exports from Russia and Ukraine. “said Ricardo Santin, president of the meat lobby. ABPA.

The sun sets behind the skyscrapers of the Moscow International Business Center, also known as ‘Moskva-City’, in Moscow, Russia April 23, 2018. REUTERS/Anton Vaganov

ABPA, which represents companies such as JBS (JBSS3.SA) and BRF (BRFS3.SA) in Brazil, the world’s largest chicken meat exporter, said Russia and Ukraine are competing with Brazilians on important markets in Asia, the Middle East and Europe. Read more

Major global companies continue to join in the exit from Russia. The big four accounting firms KPMG, PwC, EY and Deloitte have one by one severed their ties with Russia, as has the credit card company American Express (AXP.N).

Mutual fund manager Vanguard Group has suspended purchases of Russian securities from its actively managed funds, the leading mutual fund manager said on Monday. Read more

Dairy cooperative Arla Foods, French yogurt maker Danone (DANO.PA) and Belgian chemical group Solvay (SOLB.BR) also suspended their activities or investments in the country, while the RIA Novosti news agency reported quoted automaker Nissan as saying it would halt production at its plant in St. Petersburg. Read more

Russia on Monday announced new “humanitarian corridors” to transport Ukrainians trapped under its bombardment – to Russia itself and its ally Belarus, a move immediately denounced by Kiev as an immoral blow. Read more

Russia describes the campaign it launched on February 24 as a “special military operation”. He denies attacking civilian areas and says he has no intention of occupying Ukraine.

After Russian President Vladimir Putin signed a new media law on Friday, Chinese video app TikTok announced it would suspend live streaming and uploading of videos on its platform in Russia. Read more

“UNJUSTIFIED ATTACK”

Many companies have strongly condemned Russia’s actions in suspending services in the country.

“In light of Russia’s continued and unwarranted attack on the people of Ukraine, American Express is suspending all operations in Russia,” AMEX said on its website. Read more

Netflix, which had already temporarily halted future projects and acquisitions in Russia, suspended its service “given the situation on the ground”, a spokesperson said. Read more

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Reporting by Akriti Sharma, Kannaki Deka and Pratima Desai in Bengaluru, Tim Hepher in Paris; Chris Gallagher in Washington, DC, Rocky Swift in Tokyo, Toby Sterling in Amsterdam and Promit Mukherjee in Johannesburg; Nayara Figueiredo in Sao Paulo; Ross Kerber in Boston; Written by Anna Driver, Sayantani Ghosh and Peter Henderson; edited by Diane Craft, Kirsten Donovan, Bernadette Baum, Susan Fenton and Nick Zieminski

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