Equinor, UPS and FedEx join drive in divesting from Russia
Governments aren't the only ones wounding Russia's economy as a move to divest from the country takes hold among corporations. British oil major BP, the biggest foreign investor in Russia, is selling its 20% stake in Rosneft (at a cost of up to $25B) after coming under fire from the U.K. government. Up until now, BP has maintained that it was in Russia for business, not for politics, but its 30-year run in the country may now be unfolding.
The campaign spreads: Norway's Equinor (NYSE:EQNR) is following suit, exiting its joint ventures in Russia and stopping new investments there. "We are all deeply troubled by the invasion of Ukraine, which represents a terrible setback for the world, and we are thinking of all those who are suffering because of the military action," declared CEO Anders Opedal. In fact, Norway's government has even ordered its $1.3T oil fund, the world's largest sovereign wealth fund, to ditch its $3B in Russian investments.
Joining the campaign to isolate the country, UPS (NYSE:UPS) and FedEx (NYSE:FDX), two of the world's largest logistics companies, have suspended shipments to Russia. Dell Technologies (NYSE:DELL) has also banned sales to the country due to new export controls that covered computers. Meanwhile, Meta Platforms (NASDAQ:FB) and Twitter (NYSE:TWTR) are in overdrive mode to remove fake accounts, while Apple (NASDAQ:AAPL) is facing growing pressure to cut off Russians' access to the App Store.
To the skies: Just as air travel was picking up following the latest coronavirus wave, the European Union shut all Russian planes out of its airspace, as well as Canada. "That includes the private jets of oligarchs, and commercial airliners owned, registered or controlled by Russians," said European Commission President Ursula von der Leyen. Delta Air Lines (NYSE:DAL) has also suspended its code-sharing agreement with Russian flag carrier Aeroflot, further choking off Russia's access to global aviation.