Brewer Carlsberg, Japan Tobacco and a Coca-Cola bottler are among companies to shut factories in Ukraine after Russia’s invasion, while UPS and FedEx suspended courier services to and from the country.
Ukraine closed its airspace as Russian forces attacked in the early hours of Thursday, leaving budget airline Wizz Air trying to evacuate its Ukrainian-based crew, their families and four planes stuck in Kyiv and Lviv.
Many companies with operations in Russia are waiting for more clarity on Western sanctions and assessing the impact of those already announced. Washington unveiled a wave of measures that impede Russia’s ability to do business in major currencies along with sanctions against banks and state-owned enterprises.
It has imposed sanctions on the company behind the Nord Stream 2 gas pipeline, while European Commission chief Ursula von der Leyen said Brussels would block Russian access to specific technologies and markets.
Denmark’s Carlsberg, which has a 31% share of Ukraine’s beer market, suspended production at its three breweries in the country, while Coca-Cola HBC said it was implementing contingency plans which included shutting its bottling plant.
Japan Tobacco closed a cigarette plant in Kremenchuck, central Ukraine, while shipping giant Maersk halted port calls at Ukraine's Black Sea ports until the end of February.
Europe’s aviation regulator expanded a safety warning triggered by the attack, advising airlines to “exercise caution” when flying through parts of Russian airspace controlled by regional centres in Moscow and Rostov.
Shares in German utility Uniper, which has significant interests in Russia and a $1bn (R15bn) exposure to the recently suspended Nord Stream 2 project, plunged on Thursday and its controlling shareholder, Finland’s Fortum, also took a knock.
Another of Nord Stream 2’s financial backers, Wintershall Dea, said the project had been suspended on political grounds and that meant its operator could seek compensation.
Shares in German chemical company BASF, which co-owns Wintershall with Russian billionaire Mikhail Fridman’s LetterOne investor group, and other Nord Stream 2 backers OMV and Engie were also hit.
Jet engine makers Rolls-Royce and Safran said they had been ramping up supplies of titanium. The use of titanium, much of it supplied by Russia, has soared in recent years in the quest to make jets lighter.
“We have been watching this situation for several weeks and have decided since the start of the year to increase our stocks of titanium especially through distributors in Germany,” Safran CEO Olivier Andries said.
Large chip companies said they expect limited supply-chain disruption from the conflict for now, thanks to stockpiling and diversified procurement. But some industry sources said there could be an impact in the longer term. — Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.