Some Western businesses sever ties; Man United withdraws sponsorship

LONDON • Some Western companies severed their ties with Russia on Friday, and others studied whether and how to do so, as President Vladimir Putin's invasion of Ukraine triggered sanctions and pressure to abandon some business dealings.

European sports and entertainment businesses were among the first to announce such moves.

Premier League club Manchester United withdrew the sponsorship rights of Russian airline Aeroflot, Formula One cancelled the 2022 Russian Grand Prix, and organisers of the Eurovision song contest said Russia would not be allowed to participate in this year's final.

The "inclusion of a Russian entry in this year's (Eurovision) contest would bring the competition into disrepute," the European Broadcasting Union (EBU) said in a statement.

Gadget maker Dell Technologies Inc said it suspended sales in Ukraine and Russia and would closely monitor the situation to determine the next steps. New US rules on exports to Russia announced on Thursday covered computers, and Dell accounted for about 6 per cent of computer shipments to Russia last quarter, according to researcher IDC.

US carrier Delta Air Lines said, without providing a reason, that it has suspended its codesharing service with Aeroflot.

Marketing consultant Dan Sondhelm from Alexandria, Virginia, said companies were trying to balance the reputational risk of continuing to deal with Moscow with their economic interests and concerns about upsetting some of their investors.

"It will take some time for companies to make their decisions to act or do nothing," Mr Sondhelm said. "It doesn't happen overnight."

Some experts and attorneys said Western executives would seek to end commercial arrangements, even if they were not obliged to do so, to avoid public relations problems or the bureaucracy of trying to navigate sanctions in areas such as technology exports.

REUTERS