Russia is fast becoming a pariah state as yet more global business giants pull way from Vladimir Putin ’s regime.
Car makers, finance firms and Hollywood studios were among the latest big beasts to suspend dealings with the country as the invasion of Ukraine continues.
Visa and Mastercard blocked Russian banks from their payment networks leaving customers unable to use Google Pay or Apple Pay.
This led to chaos on Moscow’s Metro system as contactless payments were declined at turnstiles, forcing commuters to join long queues at ticket offices.
Hollywood giants Warner Bros, Disney and Sony stopped film releases in Russian cinemas, meaning movie fans there will miss out on blockbusters including The Batman, Turning Red and Morbius.
Big investors have started to either ditch Russian investments or withhold new ones.
Analyst Susannah Streeter of investment firm Hargreaves Lansdown said: “The corporate world is building up a fortress to isolate Russia from the international community. Companies around the globe are responding to Russia’s firepower with an ice-cold approach, freezing out Moscow from transactions, ditching investments worth billions.”
British Gas owner Centrica has said it will exit its gas supply agreements with Russian counterparts, including Gazprom. This supply contract is not affected by current government-imposed sanctions but Centrica has still launched talks to quit the deal.
Boss Chris O’Shea said: “We are shocked by the events in Ukraine and the needless loss of lives. We intend to exit our gas supply agreements with Russian counterparts, principally Gazprom, as a matter of urgency.” It comes after oil heavyweights BP and Shell announced plans to ditch investments in Russia. French giant TotalEnergies said it would no longer provide capital for new projects there.
British car manufacturer Jaguar Land Rover cited “trading challenges” as it halted deliveries to Russia. It said it made the decision with consideration to the wellbeing of its workforce and those “within our extended network”. BMW said it was “considering further measures” after also stopping exports to Russia. Volvo also suspended shipments, citing EU and US sanctions as a reason for the move.
Motorcycle maker Harley-Davidson suspended business in Russia and shipments to the country. Putin has been snapped riding a Harley-Davidson and joined a gathering of bikers in Ukraine in 2010.
Two of the world’s largest shipping firms, Maersk and MSC, suspended cargo bookings to and from Russia to avoid the risk of carrying cargo placed under Western sanctions. The move excludes food and medicines.
Adidas suspended its partnership with the Russian Football Federation, having been kit manufacturer to the national team since 2008. It comes after Manchester Utd ended its £40million deal with Russian airline Aeroflot.
Apple Inc said it has paused all product sales in Russia, is halting s halting all exports into the country and is limiting use of Apple Pay and other services there.
The Moscow stock exchange remained shut for a second day as the rouble continued to weaken, falling by up to 7% against the dollar and euro today. Shares in Russian bank VTB were suspended on the London Stock Exchange.
The UK’s biggest private pension fund, the British Universities Superannuation Scheme, said it was looking to sell its Russian assets. Its boss Simon Pilcher told Radio 4’s Today programme there was “a clear financial as well as a moral case for the move, adding: “There is very little appetite for anyone to trade with Russia under these circumstances.”
Russia responded by placing temporary curbs on foreigners seeking to sell their Russian assets. Prime Minister Mikhail Mishustin said the move was made to ensure investors take a “considered decision, not one driven by political pressure”.
Culture Secretary Nadine Dorries confirmed the French satellite that broadcasts Russia Today in the UK and EU will be switched off.
She said: “Putin’s polluting propaganda machine will now have severely restricted access into British homes via our TV screens.”
The global backlash is likely to deal another blow to an already battered economy where interest rates more than doubled this week. Ordinary Russians will suffer, with inflation likely to soar. Many are queuing at banks to try to withdraw their money.
