(FeaturedNews.com) – Taking aggressive actions against Ukraine was a terrible misstep for Russia. The nation is under attack, but not from military weapons. Western businesses are fleeing the country at an alarming rate to show solidarity with Ukraine, but one company is still holding out and refusing to cut off the nation.
Deutsche Bank Remains in Russia
On March 10, Deutsche Bank’s CEO James von Moltke was on CNBC explaining why the bank would continue business in Russia. He stated the company could not end operations because it’s in the best interests of its clients.
Von Moltke explained closing isn’t a practical solution because the bank must be available to the clients, who are still operating in the nation, to manage their needs. Essentially, it’s a matter of good customer service.
The bank wants to continue to be available but may reconsider in the future if the situation escalates further and clients end their dealings in the nation. The CEO didn’t discuss what clients it is servicing in Russia.
The Bank Stands Alone
Deutsche Bank’s decision is not a popular one. Other companies don’t share the same sentiment. A mass exodus is happening with companies from the United States and Europe.
Two Wall Street giants recently noted they would no longer operate in Russia. Goldman Sachs made the announcement on March 10, and HSBC pulled out on March 7.
Then, there is the endless list of other companies that refuse to do business in the nation. On March 8, announcements came from PepsiCo, Coca-Cola, McDonald’s, and
Starbucks. The next day Papa John’s, Hilton Worldwide Holdings Inc, and 3M Co all said they were leaving Russia.
The total is over 300 companies that have begun or completed an exit from the nation. These businesses cite the conflict in Ukraine as the main reason for leaving. It is a sign of support for the people in that nation and a way to condemn the actions of the Kremlin. Many of them also announced humanitarian aid to Ukraine alongside their remarks about ceasing operations.
In addition, staying there can cost a company in many ways. It damages them socially as there is a lot of pressure to shun Russia for its actions. Staying there is also risky financially. Sanctions make it hard to keep products and goods moving, not to mention there are safety issues with transportation. The ruble is not doing very well, and restrictions mean getting access to profits is almost impossible.
Basically, it’s easier for businesses to follow the crowd and leave so as not to deal with the issues and potential reputation damage. For now, though, Deutsche Bank is going against the flow and maintaining its operations despite the continued conflict between Russia and Ukraine.
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