As the United States and its allies levy sanctions in response to Russia's invasion of Ukraine, aimed to effectively cut the Moscow off from doing business with the U.S. and Europe, many international companies are now bracing for possible financial impacts as well.
The sanctions, which include preventing the government and Russian-own financial institutions from borrowing in global markets, blocking technology imports and freezing assets of influential Russians, were crafted by the U.S., United Kingdom and European Union as a tool to put immense pressure on Russia's economy.
However, they may have an unintended consequence of disrupting business for thousands of foreign companies who trade with Russia, threatening global economic recovery from the lingering effects of the coronavirus pandemic. For example, the European Union accounts for 37% of Russia's global trade, according to the New York Times, with about 70% of the nation's gas exports and half of its oil exports going to nations throughout Europe.
Ongoing business trade between Russia and European companies also branches out to a broad range of industries across the continent, including finance, agriculture and food supply, automotive, aerospace and luxury goods.
International pressure is already causing some major companies to cut ties with Russian-owned firms entirely, with notable severances including BP
Utility companies like France's Engie
Beyond energy, some international food and consumer goods companies also hold significant presence in Russia. These include American Coke
Elsewhere, carmakers like France's Renault
