large multinationals plant Russia

BarcelonaThe Russian economy might start to falter due to international sanctions over its invasion of Ukraine and the flight of companies it has been suffering since the attack began. Credit rating agency Fitch Ratings has once more lowered its solvency rating as a long-term issuer of Russia’s sovereign debt, which goes from B to C, in the face of an “imminent” risk of default.

In its analysis, the risk rating has justified the downgrade as a result, in part, of the decree passed in Russia on March 5, which might potentially force the renaming of sovereign debt payments in foreign currency to local currency for to creditors in specific countries. In addition, Fitch points out that since the end of last week, the implementation of the regulation of the Central Bank of Russia has restricted the transfer of Russian debt coupons in local currency to non-residents.

Apart from this reduction, the country led by Vladimir Putin is suffering a flight of multinationals in protest of the war. The latest to announce its suspension of operations in Russia on Tuesday evening were Coca-Cola, its competitor Pepsi, McDonald’s and Starbucks. “Our hearts are on the people who are enduring the inconceivable effects of these tragic events in Ukraine,” Coca-Cola said in a statement.

As for McDonald’s, it is temporarily closing a total of 850 restaurants, but has assured that it will continue to pay the 62,000 employees it has in Russia. The fast food chain, which opened its first store in 1990 when the Soviet Union opened its economy to the rest of the world, has said it does not know when it will reopen, and has also admitted that it was suffering from problems. supply. McDonald’s has also closed its 108 premises in Ukraine due to the war.

Also Unilever and L’Oréal

For its part, Starbucks has closed its 100 stores in Russia, but has also decided to continue paying its employees, who number 2,000 people. Beauty product maker Unilever has also announced that it will suspend trade with Russia, as will L’Oréal, which is closing its stores and selling online in Russia, and Roca, which is lowering its six-storey shutters and where more than 3,000 people work there.

To these closures must be added those announced last week by the Inditex group with more than half a thousand stores, Puma, Mango or Prada. In addition, last weekend they also temporarily suspended all activities in the country of Putin Visa, Mastercard and American Express.