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Article

21 Feb 2023

Author:
B4Ukraine Coalition

CSO coalition calls on US Govt. to issue business advisory to inform cos. of heightened risks associated with doing business in Russia

Not a single penny: Ending U.S. corporate complicity in Russian aggression & crimes against humanity, 21 February 2023

Business For Ukraine (B4Ukraine) — an international coalition of more than 80 civil society organizations — demands an end to ongoing US corporate complicity in Russian aggression and crimes against humanity in Ukraine.

  • 314 US companies continue to operate within Russia one year on from the full-scale invasion of Ukraine, more than from any other G7 country
  • These companies paid $8 billion in taxes to Russia in 2021 — enough to fund Putin’s war against Ukraine for a month
  • The US Government has a responsibility to warn American CEOs of the severe legal, operational, and reputational risks they face by remaining in Russia and enabling Putin’s aggression

More than 300 U.S. companies with ties to Russia at the start of 2022 continue to do business in the country, according to a new analysis of 3,078 multinational companies.

Based on data from the Kyiv School of Economics, the analysis titled “Unfinished Business” found 314 US companies are still actively conducting business in Russia, and of the companies that had a local Russian subsidiary at the start of the full-scale invasion of Ukraine, only 32, or 13%, have completed the liquidation or sale of their Russian business.

“One year after the invasion and nine years since the beginning of Russia’s aggression, this is far too little progress,” said Eleanor Nichol, Executive Director of the B4Ukraine Coalition. “While American taxpayers continue to support Ukraine, providing billions of dollars in support, more than 300 US companies have chosen to continue doing business with the Putin regime — continuing to pay taxes and indirectly supporting this horrific war and undermining sanctions.”

“While the companies doing business with Russia are reporting on their increased profits in the past year, Ukrainians are recounting their losses,” added Nataliia Popovych, member of the B4Ukraine Coalition...

B4Ukraine demands an end to all US corporate complicity and is calling on the Biden Administration to immediately issue an advisory to inform individuals, businesses, financial institutions, and other persons — including investors, consultants, and research service providers — of the heightened risks associated with doing business in Russia, and particularly business activity that could benefit the Russian military.

The Biden Administration has previously issued business advisories to help companies identify and mitigate material risks related to human rights and conflict when faced with high-risk situations in Myanmar, Xinjiang, Hong Kong, Sudan, and Cambodia. The tragic consequences of Russia’s aggression and severe risks to Ukrainian civilians and American companies merit a comparable response...

“CEOs of US companies still operating in Russia must do their part in halting the flow of financial resources to the Russian state until Ukraine’s sovereignty and territorial integrity are restored and accountability is imposed for war crimes and the destruction of Ukrainian infrastructure and property,” said Rich Stazinski, member of the B4Ukraine Coalition. “Last March, President Zelensky challenged Americans to ensure that Russia receives not a single penny to fund its war. As we mark one year since Russia’s full-scale invasion of Ukraine and nine since the invasion and illegal annexation of Crimea, the business of ending U.S. corporate complicity in Russian aggression is far from finished.”

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