The war has been going on in Ukraine for more than two months now. Every other day the evidence of the atrocities of Russian soldiers is becoming more obvious and more terrible. While Russian tanks and missiles are killing civilians, international companies and brands are cutting ties with the Russian Federation on a mass scale. After all, working and paying taxes in Russia today means funding the Putin regime and being responsible for the murder of Ukrainians.
Now, many entrepreneurs have reevaluated their relationship with Russia or are in the process of it. They review portfolios, look for a Russian trace and get rid of it. These companies choose the light side and bring the financial collapse of the war machine closer.
Everyone saw the results. The head of the Russian Central Bank, Ms. Nabiullina, is already saying that it is time to prepare for a new economic reality and look for new business models. Moscow Mayor Sobyanin says that 200,000 people would be left without a job. A support fund of 3 billion rubles will be created for them. That’s up to $180 per person.
However, some large global companies and brands choose the side of evil in this war. And investors that continue financing Russian companies, bypassing all sanctions and restrictions. If they are counting on riding out the storm, I have bad news for them, as bankruptcies and asset nationalizations are becoming common in Russia’s isolated dictatorial economy.