International Companies Monitoring Western Sanctions on Russia
- February 23, 2022
- Posted by: Quatro Strategies
- Category: Manufacturing
International companies that have big operations in Russia and Ukraine are closely monitoring Western sanctions on the country as Ukraine crisis continues to escalate. A number of manufacturing giants from Japan and Europe such as Hitachi, Mitsubishi, JTI, Danone, BASF, Toyota, Volkswagen and Renault have large operations in Russia or Ukraine.
While they try to remain calm and expect little impact in the short term, they say they will continue monitoring the developments.
Hitachi and JTI have manufacturing bases in Ukraine. Hitachi employs 7,200 people in Kyiv and Kharkiv. JTI has a plant in central Ukraine and employs 4,000 workers in its Russian plants. Commowealth of Independent States accounts for one fifth of JTI’s profit.
Mitsubishi has 141 vehicle dealerships in Russia and also has a stake in Sakhalin II project which delivers LNG to Japan. The company trades coal, aluminum, nickel, coal, methanol and plastics as well. Mitsubishi says its business interests in Ukraine and Russia is relatively small.
Toyota says its operations continue as normal in Russia, where it has a manufacturing base employing 2,600 people.
European companies such as BASF, Danone and Nestle say their priority is the safety of their employees. BASF asked employees based in Ukraine to work from home. Ukraine accounted for 0.2% of BASF’s total sales last year. Nestle made a total of $1.7 billion sales in Russia in 2020.
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