Our Clarifying Moment: A Global Call To Action
mobilize the private sector
Private sector companies are using their considerable power to respond to the Russian invasion of Ukraine. As of February 2024, more than 1,000 businesses have publicly announced they are voluntarily pulling back operations in Russia since February 2022, including major companies such as Nike, Apple, McDonald’s, Starbucks, CocaCola, Pepsi, Nissan, Netflix, Amazon, and Danone. Energy companies are making changes, as well. Shell stated it would cease all operations in Russia and purchases of Russian oil and gas, and sold its stake in a German refinery co-owned with Russia’s Rosneft in December 2023; Exxon Mobil pulled out of its last Russian oil and natural gas project; and British Petroleum sold a significant portion of its stake in the Russian-owned oil company Rosneft. Technology companies including YouTube, Facebook, and TikTok are banning Russian state media outlets from their platforms in Europe. In addition, Google suspended all advertisements within Russia in its search engine, YouTube, and display marketing, while other major technology players such as IBM, Intel, Microsoft, and Sony ended sales in Russia. Small businesses around the world are also doing their part by removing Russian products from their shelves and prominently displaying Ukrainian goods.
However, the private sector is far from unified in its response. As of February 2024, almost 400 major multinational corporations are either defying demands to exit or reduce activities in Russia or simply holding off investments and development in Russia, including Nestle, Cloudflare, TGI Friday’s, and Guess. Additionally, some major companies like Heineken, Mondelez, Beam Suntory, and Edrington have broken their promises to leave operations in Russia. In July 2023, Ukraine designated Unilever as an “international sponsor of war” due to its continued production in Russia and millions of dollars in taxes that are thought to contribute to the war effort. Although international businesses are not completely re-engaging with Russia, the steady stream of companies pulling out of Russia or curtailing their operations has significantly slowed. The Russian Government is also making it more difficult for companies to leave by implementing additional barriers such as exit taxes.
In Ukraine, some members of the private sector are stepping up to support the government and military. Microsoft has provided $540 million in free services, technical support, equipment, and cloud storage of key government information to back up data targeted by Russian cyberattacks in Ukraine as of October 2023. Google has committed $45 million in cash and services, including using staff hours to work on projects that benefit Ukrainian refugees. As of January 2024, private sector donors have donated or pledged $1.8 billion to support crucial services, aid delivery, and the energy sector, as well as logistics, technology, job placement, and other in-kind contributions. Yet, the significant assistance that will be required in Ukraine’s reconstruction requires the private sector to go further in its approach to contribute to a whole-of-society response.
Immediate actions needed:
Completely end business activity in and with Russia, including halting purchases of Russian products and divesting from stock, pension plans, and mutual funds in Russia, and urge other major multinational companies to follow suit through collective corporate social responsibility.
Cut ties with all state-run Russian entities, specifically in the energy sector, beyond restrictions currently imposed by U.S., EU, and other sanctions and monitor ongoing sanctions to ensure compliance.
Institute stringent impediments to the Russian government and elites accessing funds and safe havens abroad.
Ensure enforcement of sanctions compliance in the cryptocurrency space to prevent Russia from using cryptocurrencies outside of the traditional banking system to avoid the impact of sanctions.
Heed U.S. intelligence warnings and strengthen cyber defenses, in response to threats of retaliatory Russian cyber-attacks in Europe and America.
Move beyond ending business operations in Russia and become actively involved in Ukrainian reconstruction through remote hiring of Ukraine-based technology employees and refugees and helping to rebuild the country’s decimated infrastructure.
Invest in Ukraine and the region, including states where both Ukrainian and Russian refugees are flocking, to support economic stability and development, advance peacebuilding, and address potential drivers of instability, fragility, or wider conflict.
Provide sustained cash and in-kind support to address the impacts of the war in Ukraine, including in areas of refugee resettlement, humanitarian aid, and peacebuilding assistance, and invest in long-term recovery efforts.