May 16, 2022

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Seokjin and Citi seek to reduce exposure to Russia, and Embraer stops supplying spare parts

Seokjin and Citi seek to reduce exposure to Russia, and Embraer stops supplying spare parts

(Reuters) – France’s Société Générale said it was reducing its risks in Russia, fearing Moscow’s eye on Western sanctions, as Brazilian planemaker Embraer joined Airbus and Boeing in halting parts supplies to Russian airlines.

Referring to the challenges facing global companies while complying with the sanctions imposed on Russia after its invasion of Ukraine, Societe Generale (SOGN.PA) On Thursday, it said it could see an “extreme scenario” where Russia strips the bank of its domestic operations. Read more

City Group Company (CN) On Wednesday, it said it could face billions of dollars in losses from its exposure to Russia and is looking to exit Russian assets. Bank shares have been battered in recent days amid fears of possible writedowns and weakening economies. Read more

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Western sanctions, including the closure of some Russian banks from the global financial network SWIFT, caused dozens of international companies to temporarily stop operations in the country, hurt the ruble and forced the central bank to raise interest rates.

Britain said on Thursday it would ban Russian companies from entering the insurance market in London, the world’s largest commercial and specialized insurance hub. Read more

Fitch and Moody’s on Wednesday cut Russia’s sovereign credit rating by six notches to “junk,” citing the devastating impact of Western sanctions on the economy. Read more

Moscow has responded to the migration of Western investors by temporarily restricting sales of Russian assets by foreigners.

Meanwhile, Russian companies have felt increasing pressure.

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Sberbank (SBER.MM)Russia’s largest bank said on Wednesday it was leaving the European market because its subsidiaries faced significant cash outflows. Read more

Russian forces have yet to overthrow the government in Kyiv, but thousands have reportedly been killed or wounded and more than a million people have fled Ukraine in the week since President Vladimir Putin ordered the largest attack on a European country since 1945. Read more

torn supplies

Russia’s largest automaker, Avtovaz (AVAZI_p.MM) It is controlled by the French company Renault (RENA.PA) – It said it will stop its factories in Togliatti and Izhevsk on Saturday and March 9-10 due to the shortage of electronic components. Read more

Toyota (7203.T) It said on Thursday it would halt production at its Russian plant from Friday and indefinitely halt car exports to the country, following similar moves by rivals including Honda Motor Co. (7267.T)Mercedes Benz (MBGn.DE) Ford (FN). Read more

Supply chains, already disrupted by the pandemic, are facing further strain as the closure of airspace affects the air cargo industry, and airlines responsible for transporting an estimated one-fifth of the world’s air cargo are affected by the sanctions. Read more

The world’s largest shipping lines MSC and Maersk (MAERSKb.CO) Suspension of container shipments to and from Russia.

Maersk said on Wednesday that shipments of food and medical supplies to Russia are at risk of spoilage or damage due to significant delays at ports and customs. Read more

Amazon.com Inc said Wednesday it is using its logistics capacity to get supplies to those in need and cybersecurity expertise to help governments and businesses as part of its support for Ukraine. Read more

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collaborative performance

Japan Airlines (9201.T) and ANA Holdings (9202.T)It said it would cancel all flights to and from Europe on Thursday, which normally uses Russian airspace for its European flights, joining other airlines that have canceled or rerouted flights between Europe and North Asia. Read more

Finnair said it had begun negotiations over possible vacations among its flight crew after it had to cancel some of its flights after the closure of Russian airspace.

German Lufthansa (LHAG.DE) She said she could not provide a detailed forecast for 2022 due to the war in Ukraine and the pandemic.

Embraer (EMBR3.SA) Suspended maintenance services and the sale of spare parts to Russian customers, after the Boeing (ban) and Airbus SE (AIR.PA). The European aircraft maker also said it was analyzing whether its engineering center in Moscow would continue to provide services to local customers. Read more

Corporate condemnation of Russia has become heavy.

US energy company ExxonMobil (XOM.N)which would leave Russia like British energy companies BP and Shell (sigh)“We condemn the Russian military action that violates Ukraine’s territorial integrity and puts its people at risk,” he said.

Swedish fashion group H&M (HMb.ST) Which halted sales in Russia, said it was deeply concerned about the tragic developments in Ukraine and that it “stands with all the people who are suffering”.

spotify (SPOT.N) It said it closed its office in Russia indefinitely in response to what it called “Moscow’s unprovoked attack on Ukraine”. Read more

Additional reporting by Tassilo Hamel in Paris and Jamie Fried in Sydney; Additional reporting by Tim Hever in Paris, Satoshi Sugiyama in Tokyo, Mehr Bedi in Bengaluru, Megan Davis in New York; Written by Sayantani Ghosh. Editing by Lincoln Fest, Simon Cameron Moore and Thomas Janowski

Our criteria: Thomson Reuters Trust Principles.