To firms pulling out of Russia amid Ukraine war, Moscow’s warning: report

As the list of brands pulling out of Russia continues to grow amid the Ukraine war, Moscow has now said that international firms – eyeing withdrawal – will be met with arrests and asset seizures, a report by the Wall Street Journal has said. The warning has been issued to several companies via calls, letters and in-person visits. These companies include Coca-Cola, Procter & Gamble, IBM among others, the report said. “The warnings have prompted at least one of the targeted companies to limit communication between its Russian business and the rest of the company, out of concern that emails or text messages among colleagues may be intercepted,” the report added, citing sources.Apple, Google, Netflix, Boeing and Adidas are among the big brands that have suspended their operations in Russia so far.Also Read| From Apple to H&M and Adidas: Brands that suspended Russia ops over Ukraine warBut one of the biggest setbacks to the Russian economy is likely to be with McDonald’s withdrawal. The American fast-food chain company announced that it will temporarily close 847 outlets in Russia including the one in the Pushkin Square location. McDonald’s has said that the closure will cost the company around $50 million a month.Another such brand is Adidas, which had been the official kit supplier of the Russian football team.Amid an unprecedented imposition of financial and economic sanctions from several Western countries, Russia has stepped up efforts to prevent money leaving its borders and to support the rubble, which has already seen a precipitous downfall in value against the dollar, news agency AFP reported.Also Read| Sanctions have frozen around $300 bln of Russian reserves, FinMin saysPresident Vladimir Putin said that he is in favour of appointing external administrators to head foreign brands that have announced withdrawals from Russia intending to transfer them to those who want to make them work.Meanwhile, ahead of the fourth round of peace talks between Russia and Ukraine, Australia stepped up its anti-Moscow measures by imposing sanctions on 33 Russian businessmen including Chelsea Football Club owner Roman Abramovich.(With AFP inputs)