Russia: dilemma of foreign companies

The pressure of the opinion should not only be exercised with the groups present in Russia despite the war in Ukraine. If the international community considers that it is necessary to impose a withdrawal from the country, one must no longer leave the choice to these companies.

by Le Monde

Editorial of the “World”. The border between pragmatism, realism and cynicism is often tenuous in the business community. It is now difficult to hold for foreign companies still present in Russia, despite international sanctions decided in retaliation to the invasion of Ukraine. One month after the aggression perpetrated by the Vladimir Putin regime, growing pressure is exercised on those that have chosen to stay. France, the second foreign investor in the country, is confronted acutely to this dilemma to decide between ethics and business.

The responsiveness of companies and their ability to make radical decisions are often a function of the weight of their activities in Russia in their turnover. Close a few stores like luxury groups resolved and agree to lose a few million euros of profits obviously does not have the same impact as renouncing billions of investments in industrial facilities (Renault or TotalEnergies) , just like separating from a local bank with 2 million customers (Société Générale).

Going in precipitation without weighed the consequences for employees, the Russian population and the financial balance of the company is not necessarily the guarantee that sanctions against the Pouinian system will be effective. Abandoning assets overnight can even do the business of the oligarchs, who will be happy to resume them at a bradish price, while continuing to turn the activity. In this area as in energy supply, simple solutions must be wary of eminently complex problems.

risky strategy

Rest that some companies play the watch by setting a quick return to normal. This strategy is risky because there is no guarantee of a short-term conflict outcome. Especially, it will probably have time, even after stopping fighting, before Russia returns to the concert of nations.

At the same time, these groups must overcome complicated reputation issues. By denouncing the attitude of three of our florets before the French parliamentarians, Volodyymyr Zelensky, the Ukrainian President, initiated an effective mechanism with public opinion. “Renault, Auchan, Leroy-Merlin and others must stop being sponsors of the war machine,” the Ukrainian president accused. Faced with this charge, the speech of the companies, who are stinging to be “socially responsible”, risks ringing more and more false as the atrocities in the combat zones will grow. Renault, which ended up realizing that the situation became untenable, is now ready to disengage from Russia.

The pressure of the opinion should not only be exercised with companies. These are nice to repeat that at this stage they carefully respect the framework for international sanctions. “My position is to let the free companies decide for themselves”, insists Emmanuel Macron. If the international community considers that it is necessary to impose a clear and clear withdrawal of Russia, that the competent authorities take their responsibilities by leaving no choice to businesses. To rely on the good will of the latter is either hypocritical, or naïve. Since Westerners will consider that the solution to loosen the vice over Ukraine goes through more systematic sanctions, they must say it clearly and give them the means to apply them.

/Media reports.