Disney suspends Russian operations in response to Ukraine invasion

  • 3/10/2022
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Disney has become the latest company to suspend its Russian operations in response to the invasion of Ukraine. The entertainment group said on Thursday it will pause all business there, including content and product licensing, Disney Cruise Line activities, National Geographic magazine and tours, local content productions and its live television channels. “Given the unrelenting assault on Ukraine and the escalating humanitarian crisis, we are taking steps to pause all other businesses in Russia,” the company said. Disney said some businesses would take time to pause due to contractual nuances. The company had earlier said it would halt the release of theatrical films in Russia. Fellow Hollywood studios Warner Bros and Sony Pictures Entertainment had also decided on such a move last month. Earlier on Thursday, the Japanese retailer Uniqlo suspended its Russian operations in a U-turn after pressure to take action. This week Fast Retailing, the clothing chain’s owner, said it intended to keep its Russian shops open because clothing was a “necessity of life”, even as a string of brands, from McDonald’s and Starbucks to Burberry and Asos, suspended operations in Russia. On Thursday, however, Fast Retailing issued a statement saying it was also suspending its operations as it had “recently faced a number of difficulties, including operational challenges and the worsening of the conflict situation”. The company said it still believed making “everyday clothing available to the general public in Russia” was part of its mission but it had become clear it could no longer continue to do so because of the difficulties involved. Fast Retailing previously announced a donation of $10m (£7.6m) to the UN refugee agency UNHCR to help people fleeing Ukraine. It also said employees in Europe had been helping to deliver clothing to refugees. A number of brands have indicated they will be scaling back their operations in Russia rather than pulling out of the country because of their complex business arrangements there. Burger King said it had suspended marketing and supply chain support to its franchisee in Russia and would be refusing approval for investment and expansion. The fast food group said any profits from franchised operations would be allocated to humanitarian aid for Ukrainian refugees. The British beauty brand Lush said on Thursday that it had suspended supply to its Russian licensee and stopped online sales in the country. It is also in the process of buying out its licensee in Ukraine to secure the future of the business. Lush has 48 shops in Russia and 15 in Ukraine, and these employ more than 600 people. Its stores in Russia are continuing to operate and the company said it was “not in a position to dictate whether they are open or closed. They are governed by longstanding legal agreements that are not easily changed.” Mondelez, the owner of Cadbury chocolate, Oreo biscuits and Philadelphia soft cheese, is “scaling back all non-essential activities” in Russia but will continue to supply basic foods and support local staff. The firm said it would suspend advertising spending and all new capital investments. On Thursday, Sony and Nintendo said they had also halted shipments of gaming consoles and games to Russia. Taylors of Harrogate, the makers of Yorkshire Tea, also confirmed that it was pulling out of the country. “While Russia has been an export market for some of our teas for several years, as a result of the invasion and the subsequent sanctions, we’ve suspended trade,” a spokesperson said. Later the same day, Goldman Sachs became the first Wall Street bank to close its operations in Russia in response to the invasion. The money transfer giant Western Union also said it would be suspending operations in Russia and Belarus. The owner of KFC and Pizza Hut said on Tuesday evening that it was halting the operations of 70 KFC company-owned restaurants in Russia and finalising an agreement to suspend all 50 Pizza Hut outlets in partnership with its master franchisee. On Wednesday, Mothercare, Heineken, the UK tobacco firm Imperial Brands and Universal Music Group joined the exodus. Unilever, which owns Marmite and Ben & Jerry’s, said it had suspended imports and exports to Russia but continued to supply to local people essential food and hygiene products made in Russia.

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