Our thinking

Time to act

17 January, 2025

Almost three years ago, when Russia first invaded Ukraine, we shared some reflections on the power of clear, principled communication during crises. Back then, we urged businesses to step up, take action, and be transparent about their stance on Russia. We were reluctant, then, to suggest that all businesses should divest immediately – in particular, those providing essential services such as food, banking and personal care products to the Russian people where the decision-making matrix was  more complex, and we didn’t believe that the case for divesting was clear cut in all cases.

Fast forward to today: the war drags on, and it’s time to reevaluate. Sir Richard Branson’s latest opinion piece makes a compelling case for urgency, calling on businesses to fully withdraw from Russia. We agree. Companies have had plenty of time to cut ties with Russia in a sensitive way, and for Russian businesses to fill any gaps for the population.

When the invasion began, many assumed it would be a short-lived conflict. Few imagined it stretching into years. But as the weeks have turned into months and then years, doing nothing ceases to be a viable option. Businesses must adjust their strategies to align with their values.

One of the most fundamental principles of responsible business is to do no harm. To date, 1,000 companies have publicly and voluntarily curtailed operations in Russia beyond the bare minimum required by sanctions. Yet, some businesses continue to operate there undeterred. Companies still active in Russia have paid a staggering $41.6 billion in taxes since 2022, representing a third of the military budget.

So, if your business is still operating in Russia, we think it’s gone time to ask why. Responsible leadership means making tough calls—and making them now.

By Charlotte Pounder