Top Irish f irms still doing business with Russia amid a global corporate exodus
SEVERAL leading Irish firms are continuing to do business in Russia against a tidal wave of decisions by global household brands to cease operating there.
In the weeks after the invasion of Ukraine, hundreds of companies joined a growing corporate exodus from Russia. Thousands of employees have been affected and investments worth billions of euro have been mothballed.
Russia’s economy, meanwhile, has become largely isolated. Interest rates there have doubled to 20%, the stock market has closed and the rouble has fallen to its lowest level ever.
Irish brands exiting Russia include household names such as Guinness, Jameson and Baileys.
The withdrawal represents a significant lost market. For example, Guinness owner Diageo has products in 70,000 shops and 19,000 bars in Russia.
Building materials group CRH, one of Ireland’s largest firms, has also announced a complete withdrawal from Russia where it has a stake in six cement plants.
But some Irish-owned firms have not yet followed suit. Kingspan told the Irish Mail on Sunday this weekend it is still assessing its position. The company, which turns over €4.5bn annually, said its Russian businesses comprise ‘less than 1%’ of global operations.
A spokesman said: ‘We are monitoring the situation closely and determined to reach the right decision. It is a complex situation, and the welfare and safety of our staff is our priority.’
Another Irish firm hesitating is global packaging giant Smurfit Kappa, which is the biggest international corrugated packaging producer in Russia. Smurfit Kappa did not respond to queries about its plans for Russia.
Kerry Group also declined to comment. The dairy giant opened its first Russian facility in 2014 and opened a factory near Moscow in 2018. At present both factories remain open for business.
But blue-chip consultancy firms Grant Thornton and Arthur Cox have promised to cut ties with all Russian clients.
Other firms such as Larry Goodman’s ABP have pledged millions to help Ukraine.