These American companies are still doing business in Russia


The Starbucks logo and the Golden Arches of McDonald’s are dismantled in Russia as coffee and fast food chains both pull out of the country war in ukraine. But Russians are still stocking up on American fare like burgers and pizza, as Hard Rock Cafe and Sbarro are among more than two dozen American companies that continue to do business in Russia.

Twenty-seven U.S.-based companies are defying calls to exit or scale back their operations in Russia, according to a tally by Yale University management professor Jeffrey Sonnenfeld and his research team.

While Starbucks and McDonald’s have both announced their complete withdrawal from Russia in recent days, Hard Rock continues to operate its Hard Rock Cafes in Moscow and St. Petersburg, Russia.

The company, acquired by the Seminole Tribe of Florida in 2007, “will suspend all future investment and development in Russia and will donate all profits from both franchises in Russia to humanitarian causes in Ukraine,” Hard Rock said in a statement. emailed to CBS. Money Watch.

Another fast food provider, the American pizza chain Sbarro, also remains on site. Operating in Russia since 1997, the private company 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 n did not respond to a request for comment. .

According to Sonnenfeld, it’s not just the food chains that are “sinking”. The owner of online dating services Match.com and its Tinder unit continue to do business in Russia, with the dating company’s executives saying in an earnings call earlier this month that it expects to lose about $10 million in revenue every quarter as long as the Russian war in Ukraine continues.

“European performance was impacted by the Russian invasion of Ukraine, which reduced revenue in Russia, Ukraine and several other neighboring countries,” said Gary Swidler, Chief Operating and Financial Officer of Match.

Match Group, based in Dallas, Texas, did not respond to a request for comment.

Dating app Bumble made a different decision. In March, the social media platform announced that it was ceasing operations in Russia and removing its apps from Apple’s App Store and Google Play Store in Russia and Belarus.

Some companies considered among the worst offenders by Sonnenfeld and his team dispute the idea that they are doing business as usual because they have not withdrawn from Russia.

“Arm food”?

Tenneco, a Lake Forest, Illinois-based automotive component supplier, opened a manufacturing plant in Togliatti, Russia in 2003 and an emissions plant in St. Petersburg, Russia four years later. . The company now has four factories in Russia, two of which are inactive. “The other two we have ceased communication with and have no status information,” Tenneco said in an emailed statement.

Tenneco is complying with international laws and sanctions and has suspended cross-border shipments, with no raw materials, components or finished goods entering or leaving Russia or Belarus, he said.

“We remain focused on the health and safety of our personnel in Ukraine, Russia and other affected areas. We will continue to provide updates and do what we can to support our team members, our customers and our suppliers to get through this situation safely, as we hope for a peaceful resolution,” the company said.

Another company, Des Moines, Iowa-based food additive supplier Kemin Industries, has defended its ongoing operations in Russia as doing its part to offset hunger, including in Ukraine and Russia.

“In the longstanding belief that the weaponization of food is abhorrent, Kemin continues to do its part to help feed people and aid crippling food insecurity amplified in wartime,” the company said in a statement. at CBS MoneyWatch. “In addition to continuing to support employees in the region,” added the company, which created a Russian subsidiary in 2016.

The nearly 200 Domino’s Pizza stores in Russia remain open, DP Eurasia, the owner of Domino’s master franchisee in Russia, said it has suspended further investment for the time being and will not accept royalty payments from its operations Russians until further notice.

“There have been no significant disruptions to the group’s operations in Russia due to the current situation in Ukraine. Business from the group’s 188 stores continues and the group remains dedicated to the communities it serves. The board of administration has determined, however, that it is prudent to limit any further investment in its operations in Russia and will keep this under review in light of the geopolitical situation,” the company said when releasing its financial results in april.

The position puts him in the “Buying Time” category designed by Sonnenfeld, with a “D” rating for his decisions.

Still in Russia

Here’s a look at other U.S. companies that get an “F” grade from Sonnenfeld for decisions about their operations in Russia.

  • Aimbridge Inn. The Plano, Texas-based hotel management company operates more than 1,400 properties in 49 states and 20 countries, including ongoing operations in Russia.
  • Alignment Technology. This month, the Tempe, Arizona-based medical device maker referenced the conflict in Ukraine among factors that could “negatively impact our business and research and development activities inside and outside the ‘outside Russia’.
  • Amdocs. Founded in Israel, the information technology company is headquartered in Jersey City, New Jersey, and “always cooperates with Russian partners,” according to Sonnenfeld. The company called its exposure to Russia and Ukraine intangible and about 1% of its revenue, CEO Shuky Sheffer said in a May 11 earnings call. Amdocs is complying with US sanctions on Russia and has halted new sales of its products and services in the country. , he said.
  • Amgen. The Thousand Oaks, Calif.-based drugmaker opened an office in Moscow in 2006, and the company’s operations currently cover the entire territory of the Russian Federation, from Kaliningrad to Kamchatka, according to its website.
  • Avaya. The IT company always supports its Russian partners. Military conflict, sanctions, and export controls imposed by the United States and other countries “significantly limit our ability to conduct business with Russian companies, organizations, and individuals in the United States,” the company said in a regulatory filing. He expects to lose $45 million in anticipated revenue in Russia this year, and another $15 million as other countries shift priorities due to war.
  • Cloudfare. The San Francisco web security and performance service provider is complying with the sanctions, but has decided not to end its services in Russia. “Russia needs more internet access, not less,” Matthew Prince, the company’s co-founder and CEO, wrote in March. “We believe that withdrawing our services from Russia would do more harm than good,” a spokesperson told CBS MoneyWatch in an email.
  • Donaldson Co.. The Bloomington, Minn.-based manufacturer of industrial air filtration systems is continuing sales in Russia.
  • Fleetcor. The Atlanta-based provider of payment services for transportation companies has about 600 employees in Russia and continues to conduct business as usual.
  • Live forever products. The privately owned Scottsdale, Arizona-based multi-level marketing company still operates in Russia.
  • Huntsman Corporation. The Woodlands, Texas-based industrial chemical maker still operates in Russia.
  • International paper. The Memphis, Tennessee-based company said in March it could sell its 50% stake in a major Russian forest products company, but would continue operations in the country.
  • IQVIA. The Danbury, Connecticut-based medical testing provider is still in business and actively hiring in Russia.
  • Koch Industries still works in Russia. Guardian Glass, a subsidiary of the industrial conglomerate of Wichita, Kansas, is work with local managers in Russia “to find an exit strategy” that also keeps their roughly 600 employees safe, Koch President Dave Robertson told employees in a memo last month.
  • Medtronic. The Minneapolis, Minnesota-based medical device company continues to operate a subsidiary in Russia. In April, the company condemned the Russian invasion of Ukraine and said it would continue to support the essential business activities that provide its vital and enduring products. The company does not make new investments or start new clinical trials in the country.
  • Paccar. Truck manufacturer Bellevue, Washington, is still active in Russia. The company has suspended sales of trucks and parts to Russia and Belarus to comply with international sanctions, and handles export sales to the country through independent dealerships and a warehouse owned by third party, she said in a regulatory filing. It sold 2,500 trucks in Russia and Belarus last year.
  • Riot games. The company still operates and sells products in Russia.
  • stryker. The Kalamazoo, Mich.-based brace maker continues to sell and import into Russia.
  • TGI Friday. The company still operates in Russia. The Dallas, Texas-based restaurant chain announced in March that it would donate franchise fees from its restaurants in Russia to relief efforts in Ukraine.
  • Titan InternationalI. One of the largest manufacturers of off-road tires and wheels, the Quincy, Illinois-based company still operates in Russia. The company has halted investments in its Russian operations and is operating its southwestern Russian facilities at reduced capacity to comply with international sanctions, the company said in a regulatory filing. Its Russian business represents about 5% of consolidated worldwide sales for the first quarter ending March 31.
  • Tom Ford. The New York-based fashion house opened its first store in Russia in 2011 and still operates in the country.
  • Valve Corp.. The Bellevue, Wash.-based entertainment software and technology company behind the Steam gaming platform still provides services to Russia.
  • Zimmer Biomet. The Warsaw, Indiana-based medical device maker is continuing sales in Russia. In March, the company said it had customers, distributors and employees in Ukraine and Russia, and was working to maintain contact and offer support to all. The company condemned the invasion of Ukraine in a statement emailed to CBS MoneyWatch. “We are currently continuing to supply hospital and healthcare teams in Russia,” with part of the profits from the sale of its products in Russia going to relief efforts in Ukraine, a spokesperson said.

Previous This clever tissue box design looks like a floating iceberg
Next Binder, Suckow named to CoSIDA All-District Academic Team