Thursday, May 28, 2015Thursday, May 28, 2015

Some US companies starting to feel pain from Ukraine crisis

Published on Apr 30, 2014 1:25 PM

NEW YORK (Reuters) - Turmoil in Ukraine and a series of Western sanctions on Russia are starting to hurt some United States corporations doing business in the region, with the latest round of US penalties threatening to complicate matters further.

The companies have expressed concern about the weak Russian economy, the rouble's decline and the potential for the crisis to worsen. There are also worries about a possible backlash in Russia against Western products.

US Treasury Secretary Jack Lew said on Tuesday that international sanctions on Russia were putting pressure on Russia's economy, and more actions could be taken if Moscow did not step back from the Ukraine crisis.

Companies began feeling the pain in the first quarter, "but it seems to be worse and more uncertain and spreading in the second quarter, which will obviously impact future earnings reports," said Clement Miller, investment strategist at Wilmington Trust Investment Advisors.

Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!