FT News Briefing Why some Western companies are staying in Russia
Mar 22, 2022
Moscow is reopening its markets, stirring debate among Western companies about their operations in Russia. Nestlé faces backlash for staying put, citing employee welfare amid ongoing conflict. Meanwhile, Pakistan grapples with crippling inflation and a political crisis, as Prime Minister Imran Khan's leadership is questioned. The show investigates the complex business and ethical decisions companies must navigate during geopolitical tensions, alongside the shifting dynamics of Pakistan's foreign policy as it strengthens ties with Russia.
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Western Companies in Russia
- Many Western companies remain in Russia despite the war in Ukraine.
- This is due to factors like large factories, numerous employees, and potential asset seizure by the Russian government.
Nestlé Stays in Russia
- Nestlé, a Swiss food group, faces criticism for staying in Russia.
- Ukrainian President Zelenskyy called them out for "financing the Russian military machine."
Nestlé's Rationale
- Russia represents a small portion of Nestlé's annual revenue.
- However, leaving is complex due to the large workforce and threat of asset appropriation.