Russia Ramps Up Scrutiny On Western Companies Exiting Country Amid War With Ukraine: Report
Portfolio Pulse from Benzinga Neuro
Western companies exiting Russia are facing increased scrutiny from the Kremlin, with stringent conditions and government oversight on corporate exit strategies. This policy has been in place since Russia's invasion of Ukraine. Companies like McDonald's and Starbucks left early, but now exits require state donations, asset sales at discounts, and government approval. The energy sector requires President Putin's approval for asset sales. Companies such as Danone and Carlsberg have seen their operations temporarily controlled by Russia. Netflix Inc. has halted projects and acquisitions in Russia in response to sanctions.
December 19, 2023 | 8:27 am
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Netflix Inc. has ceased all future projects and acquisitions in Russia, aligning with Western sanctions following the invasion of Ukraine.
Netflix's decision to halt projects and acquisitions in Russia is a direct response to the sanctions and increased scrutiny by the Russian government. This could negatively impact Netflix's growth prospects in the Russian market in the short term, as the company will not be able to capitalize on any opportunities there and may face challenges in reallocating resources.
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