New York state comptroller Thomas DiNapoli, called for American companies to start considering changes to their preexisting business deals with Russia because they are facing “significant and growing legal, compliance, operational, human rights and personnel, and reputational risks,” according to Business Insider.
The NY comptroller said that either ending or even suspending business operations in Russia “would address various investment risks associated with the Russian market” and will play a crucial role in “condemning Russia’s role in fundamentally undermining the international order.”
On March 1, DiNapoli’s office released a statement that the comptroller prohibited new Russian investments.
New York State Comptroller Thomas P. DiNapoli has directed staff to prohibit all new investments in Russian companies and to review the New York State Common Retirement Fund’s (Fund) current investments and assess whether they present financial risks that warrant further restrictions or divestment. He is also reaching out to the Fund’s investment managers to urge them to conduct a similar examination to mitigate investment risk and minimize market impact.
“Russia’s unlawful invasion of Ukraine has led to unprecedented sanctions against Russian companies and individuals,” DiNapoli said. “While American sanctions already prohibit investments in many Russian companies, I believe it is prudent to freeze purchases in all Russian companies due to the situation’s unpredictability and the likelihood that conditions will deteriorate. This will ensure that the Fund does not increase its minimal exposure to the Russian economy while completing its divestment review, consistent with my fiduciary duty.
“This crisis has underscored major political and investment risks relating to President Putin’s unhinged, tyrannical foreign policy, leading to sanctions that have significantly hobbled Russia’s already weak economic growth. Russia’s currency has plummeted in just days since sanctions have been instituted. We will continue to monitor these changing events. New York stands with the Ukrainan people. We hope for a peaceful resolution.”
The Fund estimates it has $110.8 million in public equity investments including direct holdings and co-mingled funds in Russian companies.
The two aforementioned fast food companies are the latest Western companies that are considering cutting off their international business ties in the Russian market.
It’s funny because in the ways that most New York Democrat politicians behave as of late, you would think they have their offices play the Soviet national anthem to start off their days.
Disney announced last week that it will be pausing all film releases in Russia over the Ukraine invasion.
The Mickey Mouse entertainment company gave a statement that said, “Given the unprovoked invasion of Ukraine and the tragic humanitarian crisis, we are pausing the release of theatrical films in Russia, including ‘Turning Red’ from Pixar. We will make future business decisions based on the evolving situation. In the meantime, given the scale of the emerging refugee crisis, we are working with our NGO partners to provide urgent aid and other humanitarian assistance to refugees.”
BP, or British Petroleum Company, also announced that it will be ending its relationship with Rosneft, a Russian state-owned energy company.
Credit companies’ Visa and Mastercard have suspended services in Russia. What this means is if you have a Visa or Mastercard from a bank inside Russia you can still use it inside the Rodina, but you cannot make purchases from any entity outside the country. And if you have one of the two cards from a bank outside the country, you cannot use the card at all. Sucks to be Russian these days.
Helge Lund, the chairman for BP, said, “Russia’s attack on Ukraine is an act of aggression which is having a tragic consequence across the region. BP has operated in Russia for over 30 years, working with brilliant Russian colleagues. However, this military action represents a fundamental change.”
So now McDonald’s and PepsiCo are no longer going to serve their products inside Russia, which, when you think about it, is a real win for the Russian people. They will inevitably become a healthier and less fat population by the standards of the other 100 countries where they serve their delicious, mouth-watering poisons. (I eat McDonalds way more than I should admit.)