These American companies still do business in Russia
Starbucks logo and golden arches for McDonald’sWhere coffee and fast food chains are withdrawing from the country across . But Russians still sate American fare like burgers and pizza, like Hard Rock Cafe and Sbarro are among the more than two dozen American companies that continue to do business in Russia.
Twenty-seven US-based companies are defying calls to exit or reduce their activities in Russia, according to an ongoing tally by Yale University management professor Jeffrey Sonnenfeld and his research team.
While both Starbucks and McDonald’s have announced their complete withdrawal from Russia in recent days, Hard Rock continues to operate Hard Rock Cafes in Moscow and Saint Petersburg, Russia.
Hard Rock said in an emailed statement to CBS that the company, which was acquired by the Seminole tribe of Florida in 2007, “will suspend all investments and future development in Russia and will donate all profits from the two franchises in Russia to humanitarian causes in Ukraine.” Money Watch.
And the American chain of pizza restaurants “Sbarro”, which is another supplier of fast food, is still in place as well. The privately owned company has been operating in Russia since 1997, and signed a new franchise agreement in the country in 2017. It has partnered with Horeca Band Group and plans to open more than 300 Sbarro restaurants in Russia by 2027. It did not respond to a request for comment.
According to Sonnenfeld, it’s not just about food chains. The owner of online dating services Match.com and its Tinder unit continues to do business in Russia, with the dating company executives saying in an earnings call earlier this month that it expects to lose about $10 million in revenue each quarter for as long as it lasts. Russian war in Ukraine.
“European performance was affected by the Russian invasion of Ukraine, which reduced revenue in Russia, Ukraine and several other neighboring countries,” said Gary Swidler, Chief Operations and Finance Officer at Match.
Match Group, based in Texas, did not respond to a request for comment.
Dating app Bumble made a different decision. In March, the social media platform said it had ceased operations in Russia and removed its apps from the Apple App Store and Google Play Store in Russia and Belarus.
Some of the companies that Sonnenfeld and his team have deemed among the worst offenders object to the idea that they are conducting business as usual because they have not pulled out of Russia.
Headquartered in Lake Forest, Illinois, Tenneco, an automotive components supplier, opened a manufacturing facility in Togliatti, Russia, in 2003, and an emissions plant in Saint Petersburg, Russia, four years later. The company now has four factories in Russia, two of which are out of order. “The other two have stopped contacting them and we have no information on their status,” Tineco said in an emailed statement.
It added that Tenneco is complying with international laws and sanctions and has suspended shipments across borders, with no entry or exit of raw materials, components or finished products into or out of Russia or Belarus.
“We remain focused on the health and safety of our people in Ukraine, Russia and other affected areas. We will continue to provide updates and do what we can to help our team members, customers and suppliers safely get through this situation as we hope for a peaceful resolution.”
Another company, Des Moines, an Iowa-based food additive supplier, Kemin Industries, has defended its continued operations in Russia as doing its part to tackle hunger, including in Ukraine and Russia.
“With the firm belief that the weaponization of food is abhorrent, Kemin continues to do its part to help feed people and help exacerbate food insecurity during wartime,” the company said in a statement to CBS MoneyWatch. “Besides continuing employee support in the region,” the company, which formed a Russian subsidiary in 2016, added.
Nearly 200 Domino’s Pizza stores in Russia remain open, with DP Eurasia, Domino’s master franchisee owner in Russia, saying it has suspended additional investment for now and will not accept royalty payments from its Russia operations until further notice.
“There has been no material disruption to the Group’s operations in Russia due to the current situation in Ukraine. Trading continues from the Group’s 188 stores and the Group remains dedicated to the communities it serves. However, the Board of Directors decided that it would be prudent to limit any further investment in Its operations are in Russia and will keep this under review going forward in light of the geopolitical situation,” the company said in its April financial results announcement.
The situation places her in the “time-buying” category that Sonnenfeld created with a “D” score for her decisions.
Still in Russia
Below is a summary of other US companies that have been awarded the “F” rating by Sonnenfeld for their decisions regarding their operations in Russia.
- Embridge Hospitality. Hotel management company Plano, Texas, operates more than 1,400 properties in 49 states and 20 countries, including operations in Russia.
- Alignment Technology. The Tempe, Arizona-based medical device maker this month cited the conflict in Ukraine as among the factors that could “negatively affect our commercial, research and development activities inside and outside Russia.”
- Amdox. The Israel-based IT company is headquartered in Jersey City, New Jersey, and continues to “collaborate with Russian partners,” according to Sonnenfeld. The company described its exposure to Russia and Ukraine as immaterial and about 1% of revenue, CEO Choki Schaefer said in an earnings call on May 11. Amdocs is complying with US sanctions applied to Russia and has halted new sales of its products and services in the country. , He said.
- Amgen. California-based pharmaceutical manufacturer Thousand Oaks opened an office in Moscow in 2006, and currently the company’s activities cover the entire territory of the Russian Federation, from Kaliningrad to Kamchatka, according to its website.
- Avaya. The IT company still supports its Russian partners. The company said in a regulatory filing that military conflict and sanctions and export controls imposed by the United States and other countries “severely limit our ability to conduct business with Russian companies, organizations, and individuals in the United States.” It expects to lose $45 million in expected revenue in Russia this year, and another $15 million as other countries change their priorities because of the war.
- Cloudfare. The San Francisco-based security and web performance provider complies with the sanctions, but has decided not to terminate its services within Russia. “Russia needs more Internet access, not less,” Matthew Prince, the company’s co-founder and CEO, wrote in March. “We believe removing our services from Russia will do more harm than good,” a CBS MoneyWatch spokesperson said in an email.
- Donaldson Corporation. The manufacturer of industrial air purification systems based in Bloomington, Minnesota, continues sales to Russia.
- Fleetcore. The Atlanta, Russia-based payment services provider for carriers has around 600 employees, and is continuing business as usual.
- Forever Living Products. The privately owned multi-level marketing company headquartered in Scottsdale, Arizona still operates in Russia.
- Huntsman Company. Woodlands, a Texas-based industrial chemical manufacturer, continues to operate in Russia.
- international paper. The Memphis, Tennessee company said in March it might sell its 50% stake in a major Russian forest products company, but it would continue operations in the country.
- IQVIA. The medical analysis provider in Danbury, Connecticut is still operating and actively operating in Russia.
- koch industries Still working in Russia. Guardian Glass, a subsidiary of industrial giant Wichita Group, Kansas “To find an exit strategy” that also ensures the safety of their roughly 600 employees, Dave Robertson, president of Koch, told employees in a note last month.
- Medtronic. The Minneapolis, Minnesota, medical device company continues to operate a subsidiary in Russia. The company in April condemned the Russian invasion of Ukraine and said it would continue to support essential businesses that provide its life-saving and sustainable products. The company does not make new investments or start new clinical trials in the country.
- Bakkar. The Washington-based truck maker Bellevue is still active in Russia. The company said in a regulatory filing that the company has halted sales of trucks and parts in Russia and Belarus to comply with international sanctions, and is managing export sales to the country through independent dealers and a third-party-owned warehouse. It sold 2,500 trucks to Russia and Belarus last year.
- Riot Games. The company still operates and sells products in Russia.
- Striker. An orthopedic device maker in Kalamazoo, Michigan, continues sales and imports into Russia.
- TGI Friday’s. The company is still operating in Russia. The Dallas, Texas, chain of restaurants said in March that it would donate franchise fees from its restaurants in Russia to relief efforts in Ukraine.
- Titan International Ato. One of the largest manufacturers of off-road tires and wheels, the Illinois-based Quincy Corporation still operates in Russia. The company said in a regulatory filing that the company has halted investment in its Russian operations and is running its facility in southwest Russia at low capacity to comply with international sanctions. Its Russian operations represented about 5% of consolidated global sales for the first quarter ended March 31.
- Tom Ford. The New York-based fashion house opened its first store in Russia in 2011 and is still operating in the country.
- valve company. The Washington-based technology and entertainment software company Bellevue behind gaming platform Steam is still serving Russia.
- Zimmer Biomite. A medical device manufacturer in Warsaw, Indiana, continues sales in Russia. The company said in March that it has customers, distributors, and employees both in Ukraine and Russia, and that it’s focused on maintaining contact and providing support for everyone. The company condemned the invasion of Ukraine in a statement emailed to CBS MoneyWatch. “We currently continue to supply hospital and care teams in Russia,” a company spokesperson stated, with a portion of the profits from selling their products in Russia going to relief efforts in Ukraine.