Global companies close Ukraine offices, factories after Russia attack

Companies operating in Russia and Ukraine began putting into place contingency plans, as they confronted a host of challenges and sliding share prices following Moscow’s attack.

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Executives began closing offices and factories Thursday, ensuring staff were safe and sending some to the Polish border, while weighing factors likely to hit their businesses, including soaring commodities prices and the potential impact of further sanctions on Russia. Some in Ukraine were dealt additional challenges that made work difficult, including the closure of the rail network and ports and problems with gas supplies.

Ticker	Security	Last	Change	Change %
SMNEY	SIEMENS ENERGY AG	41.54	+0.71	+1.74%

The invasion rippled through boardrooms around the world. "Today is a dark day for all of us. The attack on Ukraine represents a turning point in Europe, a war was simply unthinkable for many people, especially the younger generations," Christian Bruch, chief executive of Siemens Energy AG , told shareholders at their annual meeting.

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CABGY	CARLSBERG A/S	22.01	+0.05	+0.23%

Carlsberg A/S, the Danish brewer, said it was closing down three breweries in Ukraine and asked employees to stay at home and await instructions from local authorities. One of its breweries, in the city of Lviv, was temporarily closed because of disruption in the supply of natural gas.

The company, which has 1,300 employees in Ukraine and a large business in Russia, said it was following the situation with concern. "As of this morning, we have implemented several measures to ensure the safety and well-being of our employees in Ukraine," a spokeswoman said.

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ArcelorMittal SA, the world’s second-largest steelmaker, said it was slowing production at its large plant in Ukraine and has halted production at its underground mines. The company has a series of contingency plans should the situation escalate.

Germany’s Hamburger Hafen und Logistik AG , which runs a large container terminal at Ukraine’s Odessa port, said that Ukrainian authorities closed the port Thursday morning, and that its 480 employees had left the site.

Ticker	Security	Last	Change	Change %
HHULY	HAMBURGER HAFEN UND LOGISTIK AG	9.02	-0.56	-5.85%

Elsewhere, business software provider SAP SE said it had closed its Kyiv office and taken safeguarding measures to support its employees. Food maker Danone SA, which has two manufacturing plants in Ukraine, said it was taking action to ensure the safety of its employees and business continuity. Nestle SA, which has three factories and about 5,000 employees in Ukraine, said it had plans in place to ensure the supply of products to consumers.

Ticker	Security	Last	Change	Change %
SAP	SAP SE	233.12	-0.36	-0.16%
DANOY	DANONE SA	14.35	+0.02	+0.14%
NSRGY	NESTLÉ SA	94.86	+0.34	+0.36%

As Russian tanks rolled in, Global Guardian, a U.S. firm that advises businesses on security risks, used buses to take 200 workers from international financial services, legal and other office-based companies operating in Ukraine to Poland. Dale Buckner, the company’s chief executive, said it had evacuated around 1,500 mainly foreign nationals ahead of Thursday’s incursion. The U.S. Special Forces veteran said his clients had a further 2,800 Ukrainian and foreign nationals who could also be evacuated depending on whether Moscow escalates its military action further.

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CRH	CRH PLC	95.83	+0.38	+0.39%

Other companies, such as Irish construction materials business CRH PLC, with five manufacturing plants in Ukraine, said it was yet to trigger contingency plans.

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Shares of companies with operations in Ukraine and Russia traded lower Thursday, with ArcelorMittal down more than 7%, Carlsberg around 3% lower and Danone off almost 3%.

Ticker	Security	Last	Change	Change %
BP	BP PLC	29.23	-0.13	-0.44%

Investors also sold off shares of oil major BP PLC, which was down nearly 4%, despite rising commodity prices. The British energy giant holds a 19.75% stake in Russia’s Rosneft Oil Co. A spokeswoman for BP said the company was monitoring the situation. BP executives earlier this month played down the potential risks of sanctions as tensions escalated.

Ticker	Security	Last	Change	Change %
SHEL	SHELL PLC	67.49	-0.06	-0.09%
XOM	EXXON MOBIL CORP.	114.95	-1.83	-1.57%

Other major oil companies, including Shell PLC and Exxon Mobil Corp. have large investments in Russia too. "The safety of all our staff is Shell’s highest priority. We are monitoring the situation closely," a company spokesman said. A spokesperson for Exxon Mobil wasn’t immediately available for comment.

Ticker	Security	Last	Change	Change %
VWAGY	VOLKSWAGEN AG	9.81	-0.09	-0.91%
DMLRY	NO DATA AVAILABLE	-	-	-

Companies said they were also on alert for any disruptions to operations in Russia. Volkswagen AG said the impact was "continuously determined by a crisis team," while Mercedes-Benz Group AG said it was in constant contact with the leadership of its manufacturing plant near Moscow.

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Businesses said uncertainties abounded, including regarding the extent of Russia’s incursion and the scope of potential sanctions that could follow. Western leaders have pledged sanctions that will place export controls on key technology to Russia, hit its banking sector and target its biggest businesses and wealthy individuals. These could also hurt Western companies that have joint ventures with, or investments in, Russian companies.

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HENKY	HENKEL AG & CO. KGAA	19.36	-0.04	-0.21%

German home and personal-care products company Henkel AG & Co. KGaA said it was viewing the situation "with great concern."

"The exact extent, including that of the further sanctions to be expected, is still difficult to estimate," a spokeswoman said. The company employs around 2,500 people in Russia and 600 employees in Ukraine at four production sites, two of which are located in the southeastern part of the country.

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The Eastern Committee of German Business, a lobby group representing German firms with investments in Russia and Eastern Europe, said Thursday that it has canceled a planned meeting with Russian President Vladimir Putin.

The annual event was scheduled for early March. The committee, which has in the past opposed sanctions against Russia, said it informed Moscow that the meeting couldn’t take place in the current circumstances.

Ticker	Security	Last	Change	Change %
FEEXF	FERREXPO PLC	0.8886	+0.19	+26.98%

Ukrainian businesses anticipate the greatest hit. Ferrexpo PLC, one of the world’s largest exporters of high-grade iron ore pellets to the steel industry, said that its mining and process facilities were still operating but that the government had suspended rail services.

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For Larissa Boden, one of the many farmers whose business make up the largest part of Ukraine’s economy, war came with a loud explosion in the early hours of Thursday.

"We can’t work on the fields today and are scared," she said. Her Agro-focus Ltd is Ukraine’s largest asparagus farm and based in the south of the country, near Crimea. Last week, it was planting its new crop, much of which would usually be exported.

Any disruption to Ukraine’s agricultural industry will be economically painful. Agricultural products are Ukraine’s largest export and the sector accounted for 14% of gross domestic product in the third quarter of 2021, according to the country’s statistics service.

Disruptions to Ukrainian corn exports, in particular, could be felt by Chinese pork producers and in countries like Egypt, Indonesia, Turkey and Pakistan, who are big buyers of the crop.

Ms. Boden’s business had already been affected by tensions in the buildup to Russia’s incursion. The price of the fuel it uses was up 30%. A bank that Agro-focus had been negotiating a loan with has put those talks on hold. Even before the bombing began, Ms. Boden was concerned that the seasonal workers farms depend upon would leave to work in more stable countries.

Now that Russia has invaded, "there is no contingency plan," she said. "We try not to panic."

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