MNCs shut down operations in Ukraine and moved employees to safer places.
Multinational corporations began shutting down their operations in Ukraine on Thursday and moved employees to safety, as officials grappled with the effects of a full-scale invasion by Russia and widely swinging stock and commodity prices. .
Carlsberg, one of the world’s biggest brewers, said it had suspended operations at two factories near eastern Ukraine and heavy Russian strikes in Kiev to protect workers. The Danish conglomerate, which employs 1,300 people in the country, mostly Ukrainian citizens, also temporarily closed a third brewery in Lviv after natural gas supplies were disrupted.
The swiftness of Russia’s multi-pronged attack sent shivering through international boardrooms and raised questions for businesses about how to cope with the rapidly changing geopolitical landscape.
“Today is a dark day for all of us. The invasion of Ukraine represents a turning point in Europe; A war was simply unimaginable to many,” said Christian Bruch, chief executive of Siemens Energy, at the German company’s general meeting on Thursday. “We as a company now have to analyze what this situation means for our business.”
As recently as last week, foreign companies in Ukraine had contingency plans in place, but for the most part did not believe that Russia would invade, Anna Derevinko, deputy director of the European Trade Union, said at the time.
That changed rapidly in the early hours of Thursday, as Russian airstrikes hit Ukrainian cities.
At Hamburger Hafen und Logistics, which provides transportation and logistics services, the last of 480 employees at its terminal in the Ukrainian port of Odessa were evacuated on Thursday after seeing two cargo ships, the company said in a statement. The company said in a statement.
In a sign that the conflict may not be short-lived, the company said it would pay a month’s salary advance to allow employees to “stock up on essential items”.
ArcelorMittal, which operates one of Europe’s largest steel mills in central Ukraine, said it would slow production to a “technical minimum” and was halting work at its underground mines. The company employs 29,000 employees and contractors in the country.
Cargill, the US agriculture giant and one of the largest foreign investors in Ukraine, a major wheat-producing country, said it was “working to determine whether there are disruptions or impacts in our operations in the region.” ” The company also has a large presence in Russia.
Other companies with substantial operations in Russia, including Airbus and Exxon Mobil, issued statements saying they were also prepared to announce tough new sanctions against the country by Western allies.
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