May 26, 2022

South Sudan News Agency

Complete English News World

Nestle, tobacco groups latest companies to withdraw from Russia

Nestle, tobacco groups latest companies to withdraw from Russia

March 9 (Reuters) – Nestlé(NESN.S)Philip Morris (From)and imperial brands (IMB.L)It joined the list of multinational companies that backed away from Russia on Wednesday as pressure mounted from consumers in the West to take a stand against the invasion of Ukraine.

The world’s largest packaged food group was in line with its competitors, Procter & Gamble (PG.N) and unilever (ULVR.L) in halting investment in Russia, while cigarette maker Philip Morris said it would scale back manufacturing and Imperial went further and halted it.

The moves came after Coca-Cola (KO.N) and McDonald’s (MCD.N) Sales have been halted in Russia, as a prominent member of the ruling party warned that foreign companies that shut down could see their operations nationalized. Read more

Register now to get free unlimited access to Reuters.com

McDonald’s said the temporary closure of 847 stores in the country would cost it $50 million a month. Read more

Adidas sportswear company (ADSGn.DE)It also outlined the cost of downsizing its operations, saying it would hurt sales of up to 250 million euros. Read more

PepsiCo (PEP.O) And Starbucks (SBUX.O) Dozens of international companies have also joined, closing stores or factories or exiting investments to comply with the sanctions or because of supply disruptions. Read more

These supply hurdles include the suspension of container routes by the world’s three largest shipping giants.

Yum Brands Inc (YUM.N)KFC, the parent company of fried chicken giant KFC, said it had paused investments in Russia, a market that helped it reach record growth last year. Read more

See also  European markets are volatile as fears persist between Russia and Ukraine

laws of war

In response to the mass emigration, Andrei Turchak, Secretary of the General Council of the ruling United Russia party, warned that Moscow could nationalize crippled foreign assets.

“United Russia proposes to nationalize the production plants of companies that announce their exit and the closure of production in Russia during the special operation in Ukraine,” Torchak wrote in a statement posted on the party’s website on Monday evening. Read more

The statement stated that the privately owned Finnish food companies Fazer, Valeo and Poleg are the latest food companies to announce their closure.

“We will take strict retaliatory measures, in line with the laws of war,” Torcak said.

Penalties

Moscow, which has described its invasion of Ukraine as a “special military operation,” has been hit by sweeping Western sanctions that have stifled trade, plunged the ruble and further isolated the country.

Banks and billionaires have also been targeted, as the European Commission prepares for new sanctions targeting Russian oligarchs and politicians and three Belarusian banks, Reuters reported. Read more

While the war in Ukraine and sanctions have boosted the prices of basic commodities that Russia exports like oil, natural gas and titanium, these sanctions have largely prevented Moscow from benefiting from the higher prices.

The United States on Tuesday banned imports of Russian oil. Read more

American oilfield services company Schlumberger (SLB.N), which derives about 5% of its revenue from Russia, said the ongoing conflict is likely to hurt results for this quarter. Read more

Trafigura Group, a global commodity trader, has raised a $1.2 billion revolving credit facility from banks to help tackle rising energy and commodity prices. Read more

See also  Pictured: A 57-year-old retired from California escapes from a moving United plane through an emergency exit window

Norwegian Yara (YAR.OL)Major fertilizer companies said on Wednesday they would reduce production of ammonia and urea in Italy and France due to higher gas prices.

Register now to get free unlimited access to Reuters.com

Reporting by Reuters offices. Writing by Sayantani Ghosh and Paul Sandel; Editing by Jason Neely and Jane Merriman

Our criteria: Thomson Reuters Trust Principles.