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International companies with exposure to Russia

Mon, 28th Feb 2022 14:08

LONDON, Feb 28 (Reuters) - International companies with exposure to Russia are taking steps to comply with sweeping Western sanctions following Moscow's invasion of Ukraine.

Here's a list of some of the companies exposed to Russia, which calls its actions in Ukraine a 'special operation":

ASIAN COMPANIES:

AVOLON

The privately-held aircraft lessor has fewer than 20 airplanes in russia and one or two in Ukraine, out of a total of more than 550 aircraft, its chief executive said last week.

BOC AVIATION

The lessor said on Monday most of the leases to Russian airlines would now have to be terminated by March 28. It has 18 planes representing 4.5% of its owned fleet based in Russia, placed with Aeroflot subsidiary Pobeda as well as Ural Airlines, S7 Airlines and AirBridgeCargo Airlines, BOC said. In addition it has another aircraft in its managed fleet on lease to Rossiya Airlines.

JAPAN TOBACCO

The company employs about 4,500 people in its JTI offices and factories in Russia, and its tax payments in 2020 accounted for 1.4% of the Russian Federation state budget, the company said on its website. The former tobacco monopoly relies on the Commonwealth of Independent States, including Russia and Belarus, for about a fifth of its profits.

MARUBENI CORP

The Japanese trading house has four offices in Russia, where it sells tyres for mining equipment and manages a health check-up centre.

MITSUBISHI CORP

The company distributes Mitsubishi Motor vehicles through some 141 dealerships in Russia and has a stake in Sakhalin II gas and oil development project that supplies Japan with liquefied natural gas (LNG) and trades coal, aluminium, nickel, coal, methanol, plastics and other material. It also supplies power plant equipment and other machinery to Russia.

SBI HOLDINGS

SBI Bank, established almost three decades ago, offers corporate services and loans to Japanese companies expanding operations in Russia.

TOYOTA

The company's plant in Saint Petersburg, Russia, makes Camry and RAV4 vehicles, and it has a sales office in Moscow. It has about 2,600 staff, including 26 Japanese nationals, at those locations.

EUROPEAN COMPANIES:

AERCAP HOLDINGS

The world's biggest leasing company said on Monday it would cease leasing activity with Russian airlines. It has the largest exposure in the sector to Russia and Ukraine with 152 planes, according to consultancy IBA. AerCap said by net book value 5% of its fleet was leased in Russia as of Dec. 31.

BASF

The German chemicals maker co-owns Wintershall Dea - one of the financial backers of the suspended Nord Stream 2 gas pipeline - with Russian billionaire Mikhail Fridman's LetterOne investor group. BASF also says it generates 1% of group sales from Russia.

BP

The British oil major, which is the largest foreign investor in Russia, said on Sunday it plans to abandon its 19.75% stake in oil giant Rosneft in the wake of Russia's invasion of Ukraine, marking an abrupt and costly end to 30 at times fraught years operating in the oil-rich country. It also holds stakes in several other oil and gas projects in Russia.

COCA-COLA HBC

The London-listed company bottles Coke for Russia, Ukraine and much of Central, Eastern Europe. It counts Russia among its largest markets and employs 7,000 people there.

DANONE

The French yoghurt maker controls Russian dairy brand Prostokvanhino and gets 6% of total sales from the country.

ENGIE

The French gas utility is one of five co-financiers of Gazprom's Nord Stream 2 and has a stake in the Nord Stream 1 operating pipeline along with Wintershall Dea, E.ON and Gasunie.

ENI

The Italian company and Gazprom have 50% each in the Blue Stream gas pipeline to Turkey.

EQUINOR

The Norwegian company, which has minority stakes in three Russian oilfields, said on Monday it will start divesting its joint ventures in Russia.

- Norway's sovereign wealth fund, the world's largest, will also divest its Russian assets, worth around 25 billion Norwegian crowns ($2.80 billion).

GENERALI

Italy's biggest insurer has a minority stake in Russian insurer Ingosstrakh.

HEIDELBERGCEMENT

The German company has three plants in Russia which it says don't export outside the country.

MAIRE TECNIMONT

The Italian engineering group has an order portfolio in Russia of 1.5 billion euros ($1.68 billion), representing 17% of its total order portfolio. It recently won a project from Russia's Rosneft to build a hydrocracking VGO complex in Ryazan.

METRO

The German retailer employs about 10,000 people in Russia where it serves some 2.5 million customers and operates 26 stores in Ukraine.

NESTE

The Finnish refiner said on Monday it has replaced most of its Russian crude oil purchases with other crudes such as North Sea oil. It relied on Russia for two-thirds of its oil needs.

NESTLE

The Swiss consumer goods giant had six factories in Russia as of 2020, including plants making confectionary and drinks, according to its website. Its 2020 sales from Russia were worth about $1.7 billion.

NOKIAN TYRES

The Finnish company said it was shifting some proudction to Finland from Russia where it has a plant and a warehouse. About 80% of its annual capacity is in Russia where it employs around 1,600 people.

OMV

The oil and gas company is one of the five financial backers of Nord Stream 2 and is Austria's main importer of Russian gas. It has a 24.99% stake in Russian gasfield Juschno-Russkoje.

RENAULT

The French carmaker makes 8% of its core earnings in Russia, according to Citibank. It has a 69% stake in Russian joint venture Avtovaz which is behind the Lada car brand and sells more than 90% of its car production locally.

ROLLS-ROYCE

The British aero-engine maker says 20% of its titanium, used in jet engines, comes from Russia but said the country contributes less than 2% of its total revenue.

SAFRAN

Russia's VSMPO-AVISMA is the French jet engine maker's largest single supplier of titanium though the French company says Russia supplies less than half its requirements.

SHELL

The Anglo-Dutch oil company owns 27.5% of the Sakhali-2 liquefied natural gas project, which has an annual capacity of 10.9 million tonnes and is operated by Gazprom . It's one of the five co-financiers of Nord Stream 2.

TOTALENERGIES

The French oil major is one of the biggest investors in Russia with a 19.4% stake in Russia's Novatek, a 20% interest in the Yamal LNG joint venture, as well as a 10% interest in Arctic LNG 2, scheduled to start proudction next year, according to its website.

The company also holds a 49% stake in the Terneftegas joint venture, which develops Termokarstovoye onshore gas and condensate, and a 20% interest in the onshore Kharyaga oil field and has various other interests in the country's renewables and chemicals sectors.

UNIPER

The German utility has a $1 billion exposure to Nord Stream 2, along with five power plants in Russia with a combined capacity of 11.2 gigawatts, providing about 5% of Russia's total energy needs. Uniper and its controlling shareholder Fortum together own 12 power plants in Russia and employ 7,000 people there.

Uniper owns 83.7% in Russian utility Unipro.

VOLKSWAGEN

The German carmaker has two factories and around 4,000 employees in Russia. It built around 170,000 vehicles in the country in 2021, a small number compared with the 8.9 million units sold worldwide last year.

MIDDLE-EAST:

DUBAI AEROSPACE ENTERPRISE (DAE)

The Dubai-owned aircraft lessor has at least three Russian airline customers, including Aeroflot, according to its website.

U.S. COMPANIES

EXXON MOBIL

The oil major's key asset in Russia is the Sakhalin-1 oil and gas producing project in the Pacific. Exxon Mobil also markets petrochemical products in Russia that are used by local industries, according to its website. An Exxon Mobil affiliate has a 7.5% interest in the Caspian Pipeline Consortium (CPC), which exports oil from Kazakhstan via the Russian Black Sea port of Novorossiisk.

(Reporting by Reuters correspondents, Compiled by Emelia Sithole-Matarise; Editing by Alexander Smith and Louise Heavens)

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