Multinationals are an important part of Russia’s economy. According to the Kyiv School of Economics (KSE), which hosts the most comprehensive tracker of international businesses operating in Russia, these companies contributed $25 billion to the Russian GDP in 2021, and paid $2.9 billion in taxes in 2022, according to KSE and their NGO partner on the project, the B4Ukraine coalition.
According to KSE and B4Ukraine, the three most profitable sectors for multinationals in Russia are alcohol and tobacco, mass-market consumer goods, and automobiles.
According to the KSE, after April 2022, the flood of companies leaving Russia turned into a drip. The KSE chart shows that most companies decided on whether to leave by summer 2022 at the latest.
According to KSE and B4Ukraine, the three most profitable sectors for multinationals in Russia are alcohol and tobacco, mass-market consumer goods, and automobiles.
According to the KSE, after April 2022, the flood of companies leaving Russia turned into a drip. The KSE chart shows that most companies decided on whether to leave by summer 2022 at the latest.
Shutting the door on Russia isn’t always simple, even for the companies that want to. A recent investigation by the New York Times showed that Russian dictator Vladimir Putin is making withdrawal difficult and costly for foreign companies and enriching Russia in the process.
More than 1,600 foreign companies have continued business as usual in Russia.
___________________________________________________________________________________
Exclusive: China tells Ukraine to remove its firms from 'sponsors of war' list
Reporting by Tom Balmforth and Pavel Polityuk in Kyiv and Liz Lee in Beijing; Additional reporting by Andrew Hayley in Beijing; editing by Mike Collett-White and Gareth Jones
KYIV/BEIJING, Feb 1 (Reuters) - China demanded on Thursday that Ukraine immediately remove more than a dozen Chinese companies from a list of firms designated as "international sponsors of war", saying it wanted Kyiv to "eliminate negative impacts".
- The remarks came after Reuters reported that China's ambassador in Kyiv had told senior Ukrainian government officials last month that the inclusion of the companies on the list could hurt bilateral ties.
"China firmly opposes the inclusion of Chinese enterprises in the relevant list and demands that Ukraine immediately correct its mistakes and eliminate negative impacts," a Chinese foreign ministry spokesperson told Reuters after the report was published. It did not specify what those impacts may be.
- Beijing has close ties with Moscow and has refrained from criticising Russia's invasion of Ukraine, but it has also said the sovereignty and territorial integrity of all countries must be respected. It has offered to help mediate in the war.
Ukraine has listed 48 companies globally, including 14 from China, as "international sponsors of war" whose business activities it says indirectly assist in or contribute to Russia's war efforts.
"The ambassador said that all this (the situation with the blacklist) could have a negative impact on our relations," said one of two senior Ukrainian sources who spoke to Reuters about the meeting.
- The source added that China had not set any conditions for Ukraine, but simply expressed its view about the list.
- The second source suggested Beijing could link the matter to Chinese purchases of Ukrainian grain.
Before Russia's full-scale invasion on Feb. 24, 2022, China was Ukraine's biggest trade partner and it remains an important consumer of Ukrainian grain, sunflower oil and iron ore.
The blacklist, which has no legal implications for the firms it includes, takes issue with what it describes as extensive cooperation between Chinese and Russian companies in sectors including oil and gas, the main source of revenue for Moscow.
It features Chinese energy giants China National Petroleum Corporation (CNPC), China Petrochemical Corporation (Sinopec Group) and China National Offshore Oil Corporation (CNOOC).
Sinopec and CNOOC did not immediately respond to requests for comment. CNPC stated that the list was not a new development.
'REPUTATIONAL TOOL'
Ukraine's National Agency for Corruption Prevention describes the blacklist as a "powerful reputational tool for achieving the benevolence of elements of global supply chains (and) the exit of international business from Russia".
- Though China is widely seen as an ally of the Kremlin, Ukraine has been careful not to anger the world's second largest economy throughout its war with Moscow, and it has repeatedly appealed to Beijing to join Kyiv's diplomatic efforts for peace.
Ukraine has been promoting its blueprint for peace at a series of high-level international meetings. China attended one of the meetings in Jeddah last year, but it has since refrained from attending.
China was the main destination for Ukrainian food exports shipped under a UN-brokered grain corridor established after Russia's invasion but now defunct. It accounted for around 7.9 million metric tons of the total 30 million tons transported via that route.
Under Kyiv's new Black Sea shipping corridor established last August, government data shows, some 30% of Ukraine's maritime exports, including food, metals and ore, were shipped to China.
With 14, China has the most companies on the blacklist, followed by the United States, France and Germany which have eight, four and four respectively.
China said on Tuesday that Chinese Vice Foreign Minister Sun Weidong met with Ukraine's ambassador to Beijing and exchanged views on issues of common concern, and that Sun had said the countries should respect and treat each other sincerely.
Reporting by Tom Balmforth and Pavel Polityuk in Kyiv and Liz Lee in Beijing; Additional reporting by Andrew Hayley in Beijing; editing by Mike Collett-White and Gareth Jones
China hits out at Ukraine over ‘sponsors of war’ list – Reuters
Beijing has warned of ‘negative impacts’ as Kiev continues to target businesses that deal with Russia
Beijing has demanded that Ukraine immediately remove all 14 Chinese companies from a list of businesses that Kiev has branded “international sponsors of war,” Reuters has reported.
Of the 48 international companies on the Ukrainian blacklist, 14 are from China, the most of any other country.
“The ambassador said that [the blacklist] could have a negative impact on our relations,” a senior Ukrainian source told the news agency, adding that Beijing has not yet outlined any specific consequences.
- The demand comes after Beijing’s ambassador to Kiev told senior Ukrainian government officials last month that the presence of Chinese firms on the list could hurt bilateral ties, according to the news agency.
Of the 48 international companies on the Ukrainian blacklist, 14 are from China, the most of any other country.
“The ambassador said that [the blacklist] could have a negative impact on our relations,” a senior Ukrainian source told the news agency, adding that Beijing has not yet outlined any specific consequences.
Kiev’s ‘International Sponsors of War’ project lists companies that still do business with Russia. While the list does not have legal implications, it aims to damage the reputation of businesses and push them into cutting ties with Russia, thus reducing Moscow’s “financial and technological ability.”
- In November, Kiev added Swiss food giant Nestle and German building materials giant Knauf to the blacklist for continuing to operate in Russia and pay taxes into the federal budget.
- Last month, Lithuanian seafood company Viciunai Group was also included on the list.
- Alibaba and Chinese energy giants China National Petroleum Corporation (CNPC), China Petrochemical Corporation (Sinopec Group), and China National Offshore Oil Corporation (CNOOC) are some of the largest companies listed.
China has not condemned Russia’s military operation against Ukraine, nor has it joined sanctions against Moscow.
- Beijing’s defense minister, Dong Jun, stated on Thursday that China’s support for Russia “on the Ukrainian issue” will continue “despite the fact that the US and the EU continue to put pressure on the Chinese side.”
- Russia and China consider themselves strategic partners, and two-way trade hit a record $240 billion in 2023 as economic ties continue to grow.
No comments:
Post a Comment