JCB, Burberry and Asos join widening corporate boycott of Russia

JCB, Burberry and Asos have joined corporate giants including Mercedes-Benz and Exxon Mobil in cutting ties with Russia as the country’s descent into pariah status continues following its invasion of Ukraine.

JCB, led by Lord Bamford, said it had paused all operations, including the export of machine and spare parts in the country, where it has a small "assembly plant".

Burberry, meanwhile, has put on hold all shipments of luxury goods to Russia "due to operational challenges", a spokesman said. The FTSE 100 company, which has four stores in Moscow, said it was monitoring the situation "closely" and was focused on supporting its staff particularly in Ukraine and Russia.

Asos also cut ties with Russia, saying it was "neither practical nor right" to continue to trade with the country, and halted sales on Wednesday. Analysts estimate that Russia accounts for less than 5pc of its revenue.

The online retailer also suspended sales in Ukraine immediately after the invasion as it became impossible to serve customers, Asos said.

“Against the backdrop of the continuing war, Asos has decided that it is neither practical nor right to continue to trade in Russia, and has, therefore, today suspended our sales there,” Asos said. “Our thoughts are with the people of Ukraine and all those affected in the region.”

Next, which had sent orders from the UK to Ukraine by air, stopped taking orders last Thursday.

The moves add to a growing list of Western companies cutting ties with Russia after Vladimir Putin invaded Ukraine last week, prompting a wave of harsh financial sanctions by the UK, the US and the EU.

Mercedes-Benz said it will stop selling cars and vans to Russia, joining Aston Martin and Jaguar Land Rover in ceasing exports to the nation.

BMW, Renault and Ford have already reportedly closed plants in Russia. Parts are increasingly in short supply in the country, limiting production.

Meanwhile Aviva said it will offload nearly £250m worth of Russian investments following the invasion, making it the latest major UK investor to pull out of the country.

Amanda Blanc, chief executive of the FTSE 100 insurer, said it will divest its Russian holdings “as soon as we practically can”, adding that it has “very minimal exposure” with just 0.1pc of its fund management arm invested in Russian assets.

However, this still amounts to about £240m, according to sources close to the company. The disposal has been delayed by the closure of Moscow’s stock exchange and a lack of liquidity in the Russian market, the source added.

Separately, energy giant Exxon Mobil said it would exit Russia oil and gas operations that it has valued at more than $4bn.

The decision will see Exxon pull out of managing large oil and gas production facilities on Sakhalin Island in Russia's Far East.

British Land said it plans to end its rental contract with a Gazprom subsidiary in central London as soon as possible in the wake of Russia’s invasion of Ukraine.

Two Russia-focused miners, Evraz and Polymetal International, will leave the FTSE 100 index later this month after their shares plunged in recent days.

They will be replaced by gold producer Endeavour Mining and kitchen maker Howden Joinery.

Meanwhile, UK exporters have been warned they risk breaking sanctions if they share intellectual property with Russian companies over Zoom.

Businesses are battling to keep pace with the rules as the West expands restrictions on doing business with Russia.

The Institute of Export & International Trade, a membership group for businesses involved in international commerce, said thousands of companies logged on for a webinar on Wednesday as they try to abide by the rules.

Marco Fogione, its director-general, said exporters were in danger of “inadvertently breaking the law” if they sold products that end up being shipped on to Russia.

He warned this could extend to intellectual property, even if it was just via a web call.

“Most companies would understand that sending a copy of complex designs to Russia would be an export but how many would know that even discussing them over a Zoom call could also be breaking sanctions?” said Mr Fogione.

Several major shipping companies have suspended trade with Russia, including Marsek and MSC, the world’s biggest freight shippers.

Data from analytics firm FourKites showed Russian sea imports were down 28pc week-on-week as of Monday, with the manufacturing and retail sectors seeing drops of 56pc and 26pc respectively.

Britain has already taken the unusual step of banning ships linked with Russia from using UK ports, in a move announced by Transport Secretary Grant Shapps on Tuesday. The Government is pushing through new legislation to enforce the ban.

According to data from VesselsValue, there are four Russian-affiliated vessels due to arrive in the UK between now and Friday. Two are tankers, one is carrying liquefied natural gas and the other is a small dry goods carrier.

Peter Williams, a VesselsValue, said there “could be much greater impact” on trade if other European countries followed the UK’s lead with a ban. EU officials are reportedly considering such a move.

Peter Aylott, policy director at the UK Chamber of Shipping, said the ban could prove legally tricky for British port operators.

“We're rushing in to ask ports to do the Government's behest without legal support,” he said. “And I think that puts ports in a difficult place.”