Mining major Rio Tinto joins exodus of foreign companies leaving Russia

In a significant development, Rio Tinto has become the first major mining company to cut ties with Russia related businesses joining an exodus of global companies over its invasion of Ukraine.

Sony and Nintendo have also suspended deliveries of their gaming consoles in Russia.

Japanese construction machinery supplier Hitachi said, it would cease most of its operations and exports to Russia except for vital electrical power facilities.

“We took multiple factors including the supply chain situation into account,” said Hitachi’s spokesperson echoing a similar statement from peer, Caterpillar.

As per a report from Japan’s Nikkei newspaper, Hitachi had suspended operations in Russia following a request from the Ukrainian government to do so.

Food companies including Nestle, Mondelez, Procter & Gamble, and Unilever have paused investment in Russia, but said they would continue providing essentials.

McDonald’s, and Coke have halted sales in Russia, while Yum Brands has paused investments in that country. Hoteliers Hilton and Hyatt said they would suspend development.

Japanese automaker Toyota has taken a more neutral stance, blaming a halt in production in Russia on logistical hurdles.

Russia plans on ordering local airlines to pay for leased aircraft in roubles and bar them from returning planes to foreign companies if the latter cancel the lease, according to a draft law published on Thursday.

Russia has termed the invasion of Ukraine as a “special military operation” aimed at cleansing it from Neo Nazis and de-militarize it. Moscow has also warned it may nationalise idled foreign assets in retaliation against Western sanctions.

Rio Tinto which has an 80% stake in a joint venture with Russian aluminium producer Rusal said, it was “in the process of terminating all commercial relationships it has with any Russian business.”

While Italian energy group Eni has suspended purchase of oil from Russia, it said it was watching developments closely in that war theatre closely with regards to procurement of LNG. Citigroup said it is operating its Russian consumer business on a more limited basis and will stick to its plan to divest the franchise.

Categories: Creativity, Economy & Finance, Entrepreneurship, Geopolitics, HR & Organization, Strategy

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