Explained: Why around a thousand companies are still operating in Russia?

Why companies have not pulled out of Russia: The Russian invasion of Ukraine has taken the world economy by storm as several companies have stood in solidarity with the Ukrainian cause and have suspended their operations in Russia. However, many leading brands are still operating in Russia. This has led netizens to call for their boycott on social media. 

But many are curious to know why leading brands have not closed their operations in the world's most sanctioned country.

First, many brands do not operate directly in Russia and have outsourced their operations to third parties. Also, they do not claim ownership under their names. 

Second, some brands are bound due to the legalities of the agreement which they have inked, making it harder for them to close the operations. For example FiBA, a Turkish company is operating all the Marks and Spencer (M&S) outlets in the country since 1999. Burger King restaurants have also been operated by franchisees. 

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According to a report by BBC, as many as 48 outlets of Marks and Spencer (M&S), 800 restaurants of Burger King, 28 hotels of Marriott, and 57 hotels of Accor are still being operated in the country, together accounting for around a thousand outlets. 

Here's another example. Procter & Gamble has ceased all new investments and reduced its product portfolio in the country.  However, the company is focussing on personal care items. Further,  its Gillette plant in the country accounts. Similarly, Danone and PepsiCo are continuing with dairy and baby products.

Experts are flagging concerns over intellectual property theft and are raising concerns about whether these companies should shut their operations in Russia to help further economic sanctions issued by the West. 

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