Russia’s war spurs corporate exodus, exposes business risks

Renault, one of the biggest players in Russia’s auto market, said only that it’s temporarily suspending production at its Moscow plant through Saturday “due to some logistics issues,” without being more specific.

Copenhagen-based Danish brewery group Carlsberg suspended production at two breweries in Ukraine, saying it’s “following the situation with great concern” but didn’t comment on its extensive Russian operations, including St. Petersburg-based Baltika Breweries, which exports beer worldwide.

Czech brewer Budvar, which counts Russia as one of its five major markets, halted beer deliveries to the country, saying business is not the top priority and that it’s looking for ways to help, including finding accommodations for Ukrainian refugees.

“It’s really tough to do business in Russia under the best of conditions. Now it’s become just crazy. So getting out is a smart business proposal,” said James O’Rourke, professor of management at the University of Notre Dame’s Mendoza College of Business, who specializes in reputation management and business communications.

Companies will have to chalk up any losses as the cost of doing business.

“This is like going into business with the Manson family,” O’Rourke said, referring to the followers of cult leader Charles Manson. “You honestly do not want your name associated with those people, and it’s probably not going to cost you that much to disinvest.”