EY Joins Other Big Accounting Firms Exiting Russia

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EY, one of the world’s largest accounting firms, announced on Monday that it would pull out of Russia. It is the third of the so-called Big Four firms to exit Russia after the invasion of Ukraine: KPMG International and PricewaterhouseCoopers said on Sunday that they would quit the country. The other firm is Deloitte, which could come under pressure to do the same.

These groups are structured as partnerships of local firms, so the businesses in Russia can continue to operate, the three accounting firms said, but will no longer be a part of their umbrella networks.

“The EY global organization will no longer serve Russian government clients, state-owned enterprises or sanctioned entities or individuals anywhere in the world,” EY said in a statement. It has more than 4,700 workers in its network in Russia, it said. KPMG said it had more than 4,500 people working in Russia and Belarus, while PwC said it had 3,700 workers in Russia.

The moves by the accounting firms are the latest of many major Western companies to suspend or sell their operations in Russia. (The Yale School of Management is keeping a list of these actions that it updates daily.) Here is a selection of other moves from the past week or so:

  • Finance: American Express, Mastercard and Visa said on Sunday that they would suspend operations in Russia, meaning that their branded cards issued by Russian banks would not work in other countries and cards issued elsewhere would not work for purchases in Russia.

  • Entertainment: Netflix said on Sunday that it would suspend its service in Russia, days after it said it would halt future projects in the country, including acquisitions. The Walt Disney Company and Warner Bros. said last week that they would pause the release of movies in the country.

  • Manufacturing: Last week, Boeing and Ford Motor said they would suspended operations in Russia, while Volvo halted the sales of its cars there.

  • Energy: BP, Exxon Mobil and Shell, all major investors in Russia’s most important industry, announced recently that they would sell their operations in the country.

  • Retail: The French luxury giants LVMH and Hermès said on Friday that they would temporarily close their stores in Russia, coming after similar moves from Ikea and TJX, the owner of T.J. Maxx and Marshalls.

  • Tech: Apple and Microsoft said that they had paused the sales of its products in Russia, and Google’s YouTube has blocked advertising from Russian state-owned media.



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