EY joins other large accounting firms exiting Russia
EY, one of the world’s largest accounting firms, announced on Monday that it would exit 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 they would leave the country. Another firm is Deloitte, which may be under pressure to do so.
These groups are structured as partnerships of local firms, so businesses can continue to operate in Russia, the three accounting firms said, but will no longer be part of their umbrella network.
“The EY global organization will no longer serve customers of the Russian government, state-owned enterprises or approved entities or individuals anywhere in the world,” EY said in a statement. Its network in Russia has more than 4,700 employees. KPMG said it has more than 4,500 people working in Russia and Belarus, while PwC said it has 3,700 employees in Russia.
The moves by accounting firms are the latest in several 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 are a selection of other moves from last week:
Finance: American Express, MasterCard and Visa said on Sunday they would suspend operations in Russia, meaning their branded cards issued by Russian banks would no longer work in other countries and cards issued elsewhere could be used for purchases in Russia. will not work for
Entertainment: Netflix said on Sunday 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 halt the release of films in the country.
Production: Last week, Boeing and Ford Motor said they would suspend operations in Russia, while Volvo halted sales of its cars there.
Energy: BP, Exxon Mobil and Shell, all major investors in Russia’s most important industry, recently announced they would sell their operations in the country.
Retail: French luxury giants LVMH and Hermès said on Friday they would temporarily close their stores in Russia, following similar moves by Ikea and TJX, owner of TJ Maxx and Marshalls.
Take: Apple and Microsoft said they had halted sales of their products in Russia, and Google’s YouTube blocked advertising from Russian state-owned media.
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