A bartender in St. Petersburg, Russia, is seen holding a glass of Carlsberg beer in a bar. Ukraine is calling on global companies to divest from Russia and relocate to Ukraine due to Moscow’s continued seizure of foreign companies’ assets. Russian President Vladimir Putin recently signed a decree to take control of the Russian subsidiaries of French food producer Danone and Danish brewer Carlsberg, placing the companies’ shares under “temporary administration.” Following Russia’s invasion of Ukraine in February 2022, approximately 1,000 international firms began the process of leaving Russia, but many have struggled to sell their assets successfully. This move by Russia marks the first time it has taken control of Western companies’ subsidiaries since seizing Finnish and German energy companies in April. UkraineInvest’s CEO, Sergiy Tsivkach, is urging more companies with operations in Russia to pull out and relocate to Ukraine. Tsivkach emphasizes the importance of not only considering the ethical implications but also the business case for fully divesting from Russia. Over 1,000 companies have voluntarily curtailed operations in Russia, according to the Yale School of Management, but some continue to operate undeterred. Tsivkach believes that Russia’s actions make it an unreliable business partner that cannot be trusted. Carlsberg and Danone have both expressed their intentions to assess and respond to the legal and operational consequences of Russia’s seizure of their subsidiaries. With the unpredictability of retaining operations in Russia, Tsivkach suggests that it could take decades before companies see enough of a business case to consider returning. Ukraine’s recovery efforts have received nearly $60 billion in pledges from its allies, but many investors remain hesitant due to the ongoing war. David Roche, president of Independent Strategy, argues that Ukraine’s future security needs to be guaranteed by NATO rather than relying solely on business investments. While NATO has provided more arms to Ukraine, Roche believes that they haven’t provided the long-range missiles necessary for Ukraine to win the war. The lack of a timeline for Ukraine’s inclusion in NATO has also caused tension. Roche states that a prolonged war serves Russia’s interests, as NATO is unlikely to allow Ukraine to join while it is engaged in active conflict.
Ukraine Aims to Attract Global Companies Away from Moscow Following Asset Seizures of Danone and Carlsberg
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