Yahoo Finance’s Alexandra Semenova joins the Live show to discuss how notable companies like Dunkin’ Donuts and Subway are hesitant to stop doing business in Russia amid Putin’s invasion of Ukraine.
BRIAN SOZZI: Corporate exodus from Russia in response to its military invasion of Ukraine has seen more than 300 US and multinational companies sever business ties with the country, according to Yahoo Finance analysis. But even as many flee, a number of big name firms have remained mum. Yahoo Finance’s Alexandra Semenova has more on this. Alexandra.
ALEXANDRA SEMENOVA: Well, Brian, Russia’s invasion of Ukraine has sparked a new wave of corporate activism. When you and I started putting together a list of companies that were severing business ties with Russia, it was just a handful of names about two weeks ago. And in this short period, about 300 US and multinational companies have withdrawn from Russia’s market. And that list seems to be growing by the minute.
But even as many flee, some companies have stayed silent and are continuing to do business as usual in Russia’s market. Some of the big ones include Marriott International, with about 10 hotels in Russia, the cloud computing company, Citrix System– Systems. And Mondelez, which is the maker of brands like Oreos and Chips Ahoy, has scaled back some of its business, but still has exposure to its business in Russia. This is according to a list compiled by Professor Jeffrey Sonnenfeld of the Yale School of Management, who is keeping tabs on this changing list, along with his research team, and updating it hourly.
We’re seeing more of the big names that were initially on the docket of companies with exposure to Russia actually bowing to increasing pressure and withdrawing from the market. Just about 10 minutes ago, we received a statement from Dunkin’ Donuts that told us that the company has suspended all current development and business in Russia. Dunkin’ has about 20 franchised locations in Russia operated by locals there.
One of the big ones yesterday, too, was Japanese fashion retailer Uniqlo, which made a big U-turn after initially defending its decision to keep its shops in Russia open. Burger King, which is about 800 locations in the country, came in a bit late to the party yesterday as well. And the situation remains very fluid. And it’s changing by the hour as more and more companies bow to the pressure that is growing for them to pull out. Brian, Julie.
BRIAN SOZZI: I think this story has ballooned to about a 9,000-word story so far– probably hit 10,000 plus very soon. Alexandra Semenova, good to see you.