The wholesale group wants to stick to its commitment to Russia.
(Photo: Bloomberg)
Instead of big names in German business, an error message appears. Until recently, the website of the German-Russian Chamber of Commerce listed those companies that have a strong presence in Russia. The site is now offline – because the companies get a lot of hate mail, as it says on request.
The list wouldn’t be that long anyway. More and more German companies have withdrawn from Russia – but by no means all of them. For example, Metro, Bayer and Henkel are continuing to do business in Russia. And they are receiving harsh criticism, especially on social media.
These companies actually have good reasons to hold on to their Russian business. Not every company that is withdrawing should put this on public display. And not everyone who sticks to it should be pilloried. It’s worth taking a look at the details.
Siemens, for example, has announced that it will only stop its new business with Russia. This is not reprehensible, on the contrary. But the announcement also means that what Siemens has built up in Russia over the past 170 years will continue.
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In addition, the group makes just one percent of its total sales there. The retreat is therefore symbolic at best. Many other German companies, which incidentally do not end their business for good but temporarily suspend it, only generate a fraction in Russia. Such a withdrawal may be painful, but it is bearable.
>>Read more about this: These German companies want to keep doing business with Russia – even if it gets more complicated
The situation is different with Metro, for example, which accounts for almost a tenth of sales in the country: the wholesaler has 3,400 employees in its 93 stores. According to Metro, a withdrawal would jeopardize 10,000 more jobs and the business of 2.5 million companies. More people who are not responsible for the war would suffer. Bayer’s argument to continue producing vital medicines in Russia is just as understandable. Companies also have a social responsibility.
It is exactly right that many Western companies are withdrawing from Russia. Increasing economic pressure on the country is one of the few chances to isolate President Putin. Every company boss must be aware of the overall consequences.
Henkel, for example, has stopped new investments and advertising in Russia, but wants to continue producing cleaning products for the local people. Perhaps that’s a workable compromise between criticism and caring. The decision for or against a withdrawal from Russia is extremely complicated for ethical and economic reasons. But one thing is clear: the public should not be too quick to judge.
More: “Times are getting much worse” – Europe’s banks fear expropriations in Russia