The Russian invasion of Ukraine is causing a mass exodus of companies from Russia, reversing decades of investment in the country from Western and other foreign businesses following the collapse of the Soviet Union in 1991.
When the Soviet Union fell apart, foreign companies saw enormous opportunities — a massive new market of millions of consumers as well as minerals and oil — and poured in to buy, sell and partner with Russian firms.
The list of those cutting ties or reviewing their operations is growing by the hour, Bloomberg reports, as foreeign governments increase sanctions against Russia, close airspace and lock some banks out of the SWIFT money messaging system.
With the ruble (Russian currency) plunging and the U.S. banning transactions with the Russian central bank, operating in Russia has become very difficult.
Today, Apple announced that the company has stopped selling its products through the Apple Store in Russia, for example. All Apple products on the company’s Russian storefront are listed as “unavailable” for purchase or delivery in the country.
Many companies are to follow, as they begin to conclude that the risks, for both their reputation and finances, are too great to continue.
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