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© Copyright 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.Companies find it's not so simple to leave Russia; some quietly stay put
By DAVID McHUGH NEW YORK©2024 GPlusMedia Inc.
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Laguna
Sanctions take time to bite. Also, those on retailers, which are more easily evadable, are far less important than those on oil and gas producers and other tech-heavy industries such as airlines. Russia has neither the knowhow nor the equipment to keep them operating over the medium-term. Within a few years, their bite will be felt, and Russian living standards will revert to those of the Soviet days.
virusrex
Painful lesson for companies and governments about implicitly supporting an autocratic government just to get a piece of the business. Hopefully this at least will be useful the next time (in China?)
Fredrik
Right. However was not in that list.
Of course, deciding to pull out of Russia, is going to be costly. You can stay and earn money, and pay parts of these earning Putin as taxes. Or you can leave. As always, you can't both have the cake and eat it.
Clay
Yep, money talks and you know what walks!
Look at automotive, Chinese makers simply moved in, putting that much more market and financial pressure on Japanese makers who are WAY behind in EV etc.
Reality's Russia' economy doing fine as their Central Bank not printing money like those in G-7, running massive Govt. spending deficits with HUGE accumulated debt levels. Reality's their economy is built for inflation, unlike the VERY financially leveraged G-7 and they have LOW debt levels. Companies know the reality, so unless brand/consumer based, simply keeping LOW profile.
kibousha
If sanctions work, North Korea wouldn't be the North Korea we know today.
EFD
kiboushaToday 02:43 pm JST
Correct. They’d be much worse. Stronger. Better armed. More willing to commit acts of terror as they used to.
Desert Tortoise
Please publicize these companies so we can boycott them.
Clay
There are too many companies, most of its B-to-B stuff, certainly many materials used in whole range of products across most sectors.
Take concrete for example, what stop walking on sidewalks or sleeping in your home or apt?! It'll be tough boycott I expect, then there's toilet paper etc. and you\re getting the idea, I'm sure!
quercetum
You can’t take these Western media reports as the Gospel. Here is an example:
Ukraine's Foreign Minister denies that Chinese envoy called on European countries to recognize Ukrainian territories as belonging to Russian
They keep trying to frame China but China is very much neutral and in the mediation process.
TaiwanIsNotChina
Let them get it from the UN or by black market. Putin's regime would not last without some support among the people. Name and shame those companies that refuse to leave.
TaiwanIsNotChina
If sanctions didn't work, North Korea wouldn't be the impoverished state it is today.
quercetum
It depends on whom you sanction. In Japan’s case back in the day, they worked and made Japan who they are now, a country the US do not have to worry about.
In Russia’s case, they’ve made the Russians more resilient. MASm won’t tell you that though. The same with the Chinese. Sanctions aren’t measured solely by sales figures or gdp. If sanctions made Chinese industries stronger and more self-reliant, particularly in creating your own supply chain, they will have failed. If sanctions causes North Korea to be poor but with icbms nuclear warheads aimed at your country, you have created a monster. You have failed.
You can only console yourself by pointing to their sanctioned economy. Comparing yourselves with those below you is what losers do.
Sanctions have repercussions. The repercussions of Sino-Russian relations Biden has set to counter the U.S., essentially creating a more formidable, stronger US adversary is for 50 years. His little sanctions won’t last but a few years.
ushosh123
Doesn't really surprise me. Tech know how, and physical assets can't be withdrawn so easily over night. It's still a zero sum game, so forcing them to take a 50% loss or something also means someone (Russian likely) is taking it at a significant discount.
Desert Tortoise
Reformat all the computers and everything that has a processor in it and either destroy or reformat any removable media so there is no data for anyone to use and walk away. They are not going to run a plant if the computers that control the machinery are reformatted and blank.
Desert Tortoise
Western media is a good deal more reliable than your versions of events. The nice thing about the west is that I can read all kinds of media, new sources from Asia, from the Middle East, from Europe and South America. I don't rely on one nation's media. But if nothing else is true, your take on the world is highly biased and often not even close to the facts.
Baradzed
It’s not about staying or leaving, it’s more about investing in Russia or not. Right now it’s strongly not. Even Russian professionals are not investing in Russia by escaping it in numbers. To add more, Russian market is ridiculously small and shrinking (don’t get fooled by its territory on a map), so its really not a big deal.