On February 24th, 2022, Russian President Vladimir Putin made the decision to invade Ukraine after months of preparations. Several weeks later, the war caused thousands of deaths on both sides, including the destruction of many Ukrainian cities. The U.S. and the west have responded with sanctions aimed at crippling the Russian economy. With this decision, companies are following suit and withdrawing from Russia; but not all companies are pulling out. Some of the most known corporations have instead started to suspend business inside of Russia. Some of these companies include McDonald’s, Coca-Cola, Ford, Starbucks, and several others. President Biden also announced the banning of Russian ships from entering U.S. ports. This move has slightly raised the already increasing gas prices, but in the long run, it must be done to help Ukraine.
The sanctions, combined with many large companies leaving, have dealt a heavy blow to Russia’s economy. One example is that one U.S. dollar is equivalent to 86.8629 of a Russian ruble, and this is just the average exchange rate. The exchange rate is what one currency in the world is worth in another. To put it into perspective, this means that one Russian ruble is worth less than one United States cent.
Some flight companies, such as Airbnb, are also choosing to stop flights to and from Russia. However, to ensure that Russian citizens won’t be affected by a war they mostly didn’t want, some companies plan to still pay employees working in Russia, even if they stop doing business there. This ensures that the consequences are aimed at Russia’s economy, not its citizens. Around 400 companies that supply Russia with different products, from food to vehicles, have also withdrawn from Russia. These companies have declared that they will only return to normal business in Russia if the war is ended with Ukraine still standing. Despite all these companies withdrawing, some have yet to pause operations inside of Russia. These companies include Hilton Hotels, Bridgestone Tires, Pirelli, Caterpillar, John Deere, and many more. These companies could easily leave Russia in the coming weeks or months but have decided to stay. The efforts from thousands of companies worldwide seem to be paying off. By damaging Putin’s War Machine and his economy, the consequences are definitely being felt.