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These U.S. companies are still doing business in Russia

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These U.S. companies are still doing business in Russia

Starbucks logo and McDonald’s golden arches dismantling in Russia With both coffee and fast food chains exiting the country, ukraine warBut Russians are still enjoying American delicacies like burgers and pizza, as Hard Rock Cafe and Sbarro are among more than two dozen American companies that continue to operate as usual in Russia.

According to a tally by Yale University management professor Jeffrey Sonnenfeld and his research team, 27 U.S. companies have ignored calls to exit or reduce their activities in Russia.

While both Starbucks and McDonald’s have announced their complete withdrawal from Russia in recent days, Hard Rock continues to operate Hard Rock Cafes in Moscow and St. Petersburg, Russia. The company, acquired by the Florida Seminole Tribe in 2007, did not respond to a request for comment.

Another fast-food supplier, American pizza chain Sbarro, also stayed put. The privately held company has been operating in Russia since 1997 and in 2017 signed a new franchise agreement in the country. It has partnered with Horeca Band Group and plans to open more than 300 Sbarro restaurants in Russia by 2027. It did not respond to a request for comment.

Sonnenfeld says it’s not just the food chain that’s “deep”. The owner of online dating service Match.com and its Tinder division continues to operate in Russia, as long as Russia’s war in Ukraine continues, executives at the dating firm said on an earnings call earlier this month.

“European performance was impacted by Russia’s invasion of Ukraine, which reduced revenue for Russia, Ukraine and several other neighboring countries,” said Gary Swidler, chief operating and financial officer at Match.

Dallas, Texas-based Match Group did not respond to a request for comment.

Dating app Bumble decided differently. In March, the social networking platform said it would cease operations in Russia and remove its apps from the Apple App Store and Google Play Store in Russia and Belarus.

Some companies, considered by Sonnenfeld and his team to be among the worst offenders, have challenged claims that they have not pulled out of Russia and are business as usual.

Lake Forest, Illinois-based auto parts supplier Tenneco opened a manufacturing plant in Togliatti, Russia in 2003 and an emissions plant in St. Petersburg, Russia four years later. The company currently has four factories in Russia, two of which are idle. “We have ceased contact with the other two companies and have no information on their status,” Tenneco said in an emailed statement.

It said Tenneco, in compliance with international laws and sanctions, has suspended cross-border shipments and that no raw materials, components or finished products are entering or leaving Russia or Belarus.

“We remain concerned about the health and safety of people in Ukraine, Russia and other affected regions. We will continue to provide updates and do everything we can to help our team members, customers and suppliers navigate this situation safely, as we have Hope for a peaceful solution,” the company said.

still in Russia

Below is a summary of US companies that have received an “F” rating from Sonnenfeld for business decisions in Russia.

Elmbridge Hotel. The Plano, Texas-based hotel management company operates more than 1,400 hotels in 49 states and 20 countries, including ongoing operations in Russia. Align Technology. The Tempe, Arizona-based medical device maker this month listed the Ukraine conflict as one of the factors that could “adversely affect our commercial and research and development activities in and outside Russia.” The information technology company, founded in Israel and headquartered in Jersey City, New Jersey, is “still working with Russian partners,” according to Sonnenfeld. Chief Executive Shuki Schaeffer said on a May 11 earnings call that the company said its exposure to Russia and Ukraine, which accounted for about 1% of revenue, was unimportant. Amdocs complies with applicable U.S. sanctions against Russia and has stopped selling its products and services in the country, he said. Amgen. The Thousand Oaks, Calif.-based drugmaker opened an office in Moscow in 2006 and, according to its website, currently covers the entire territory of the Russian Federation, from Kaliningrad to Kamchatka. Avaya. The information technology company is still supporting its Russian partner. The company said in a regulatory filing that military conflicts, sanctions and export controls imposed by the U.S. and other countries “severely limit our ability to conduct business with Russian companies, organizations and individuals in the United States.” It expects to lose $45 million in expected revenue this year in Russia and another $15 million as other countries shift priorities due to the war. Cloudfare. The San Francisco security and network performance service provider is complying with the sanctions but decided not to terminate its services in Russia. “Russia needs more internet access, not less,” Matthew Prince, the company’s co-founder and chief executive, wrote in March. “We believe that removing our service from Russia would do more harm than good,” a spokesperson told CBS MoneyWatch in an email. Bloomington, Minnesota-based manufacturer of industrial air filtration systems, Donaldson Co., continues to sell to Russia. Fleetcor. The Atlanta-based payment service provider for transportation companies has about 600 employees in Russia and continues to conduct business as usual. Forever Living Products. The Scottsdale, Arizona-based privately held multi-level marketing firm still operates in Russia. Huntsman Corp. The Woodland, Texas-based industrial chemicals maker still operates in Russia. International Paper. The Memphis, Tennessee-based company said in March that it may sell its 50 percent stake in a large Russian forest products company but will continue to operate in the country. IQVIA. The Danbury, Conn.-based provider of medical analytics is still operating in Russia and actively hiring. Kemin Industries. The Des Moines, Iowa-based feed additive supplier launched a Russian subsidiary in 2016 and still operates in the country. Koch Industries still operates in Russia. Guardian Glass is a subsidiary of Wichita, Kansas Industries Group Cooperation with its local manager in Russia Koch President Dave Robertson told employees in a memo last month to “find an exit strategy” to keep their roughly 600 employees safe. Medtronic. The Minneapolis, Minnesota-based medical device company continues to operate a subsidiary in Russia. The company condemned Russia’s invasion of Ukraine in April and said it would continue to support essential business activities that provide its life-saving and sustaining products. The company has not made new investments or started new clinical trials in the country. Paccar. The Bellevue, Washington-based truck maker is still active in Russia. The company said in a regulatory filing that it had suspended truck and parts sales in Russia and Belarus to comply with international sanctions and managed export sales to the country through independent dealers and third-party-owned warehouses. Last year it sold 2,500 trucks to Russia and Belarus. Riot Games. The company still operates and sells products in Russia. Stryker. The Kalamazoo, Michigan-based orthopedic device maker continues to sell and import products to Russia. TGI Friday’s. The company is still operating in Russia. The Dallas, Texas-based restaurant chain said in March it would donate franchise fees from Russian restaurants to relief efforts in Ukraine. Titan International. One of the largest manufacturers of off-road tires and wheels, the Quincy, Illinois-based company still operates in Russia. It stopped investing in its Russian operations and reduced the operating capacity of its facilities in southwest Russia to comply with international sanctions, the company said in a regulatory filing. Its Russian business accounted for about 5% of consolidated global sales in the first quarter ended March 31. Tom Ford. The New York-based fashion house opened its first store in Russia in 2011 and still operates in the country. The entertainment software and technology company behind Valve Corp.’s Bellevue, Washington-based Steam gaming platform is still serving Russia. Zimmer Biomet. The Warsaw, Indiana-based medical device maker continues to sell in Russia. The company said in March that it had customers, distributors and employees in Ukraine and Russia, and was focused on staying connected and supporting everyone. The company condemned the invasion of Ukraine in an emailed statement to CBS MoneyWatch. “We currently continue to serve hospitals and nursing teams in Russia,” a spokesman said, adding that some of the profits from selling its products in Russia will go to rescue efforts in Ukraine.more

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