Ukraine conflict: More companies pull back from Russia

may be profitable, but "the rest of the world is more important" when it comes to a reputational risk like this.

On top of that, some tech companies, flooded by misinformation, are restricting Kremlin-linked media outlets posting on their platforms.

Facebook, for example, was restricted in Russia after it said it had refused to stop fact-checking and labelling content from state-owned news organisations.

Retail

Swedish fashion giant H&M has become the latest retailer to withdraw, and many more are likely to follow suit, according to Maureen Hinton of retail consultancy GlobalData.

But while H&M cited "tragic developments" in Ukraine, other brands including Nike have simply said they can't currently guarantee delivery of goods to customers in Russia.

Burberry, which has a flagship store on Moscow's Red Square, said it was pausing all shipments because it had become "difficult to fulfil orders in Russia".

Russia was the fifth largest European retail market in 2021, valued at £337.2bn. Some brands may not want to burn their bridges, if there's a chance of returning at some later date.

That is why many firms simply say they are "reconsidering" or "suspending" sales rather than withdrawing altogether, says Chris Weafer.

And with sanctions limiting forms of payment, restrictions on taking foreign exchange out of the country and huge uncertainty over future prices and consumer appetite, the business climate is "extremely challenging" he adds, making the decision to hit pause easier.

Cars

Jaguar Land Rover (JLR), General Motors, Aston Martin and Rolls-Royce are among the carmakers which have halted deliveries of vehicles to Russia due to the conflict, while construction equipment manufacturer JCB has paused all operations.

Cars are the biggest UK export to Russia, but still only 1% of UK cars went to Russia last year.

So any decision to stop exporting won't be particularly costly, and will have been made easier by nagging concerns over whether or not payments will arrive, said investment analyst, Russ Mould.

Transporting cars to Russia could prove difficult anyway, with the world's two largest cargo shipping companies, MSC and Maersk, suspending routes to and from Russia, except for food, medical and humanitarian supply deliveries.

Some car manufacturers, such as Volkswagen and BMW have had to pause production at some European plants because of a lack of parts from Ukraine.

Consultancy firms

Large consultancy and law firms were some of the first to set up a presence in Russia after the fall of communism, but mostly operate out of the spotlight.

Most have so far remained tightlipped over their plans, following Russia's invasion of Ukraine, but Jonathan Holt, the UK boss of KPMG, said it was reviewing its clients in line with the sanctions. He did say that would mean ending some relationships both in the UK and across the world.

EY said it would comply with sanctions, but has not confirmed whether or not it intends to sever ties with any clients.

Some legal and consulting firms also say they are reviewing their client base and Russian links.

A senior executive for consultancy firm McKinsey, for example, wrote in a social media post that the company would "no longer serve any government entity in Russia."

But according to reports in the

Wall Street Journal, McKinsey would not comment on whether that ban would apply to state-controlled companies like Rosneft. According to McKinsey's website, it serves 21 of the 30 biggest Russian companies.

Who remains?

While the flood of announcements from firms stepping back from Russia goes on, there are calls for more to join them - especially some of the biggest consumer brands.

But some will find it a lot harder to extricate themselves, even if pressure mounts in the coming days and weeks.

In retaliation against Western sanctions, the Russian government has banned the sale of Russian assets. So firms that, in recent years, have been encouraged to establish a presence in Russia, to make breakfast cereals or detergents, are "locked in" with local businesses, staff and supply chains.

Mr Weafer believes it's likely that large consumer brands may express concerns over the military conflict, but try to "ride it out".

"They'll leave door open for an improvement that will allow them to stay," he predicts.