Lamborghini Freezes All Business in Russia
Companies are pulling out as heavy sanctions take a toll on the Russian economy.
As the Russian invasion of Ukraine rages into its second week, more and more businesses are announcing a halt to their operations in the Russian Federation. Fresh amongst those is Lamborghini, with the Italian manufacturer announcing the move on Twitter this week.
Lamborghini's statement spoke directly on the conflict, though stopped short of directly criticizing Russia, stating the company is "deeply saddened by the events in Ukraine and observes the situation with grave concern." The company also notes that "In light of the current situation, business with Russia has been put on hold."
The move follows that of parent company Volkswagen, which announced on March 3 that it would shut down production of vehicles at its Russian plants in Kaluga and Nizhny Novgorod. Exports of Volkswagen vehicles to Russia have also been halted.
Many other brands that were initially hesitant to act have since announced they will stop doing business in Russia. Tuesday saw Coca-Cola, McDonalds, Starbucks, and PepsiCo all state a suspension of business with the country, as reported by CNBC. It's a particularly bold move for Pepsi, which has done business in Russia, and formerly the USSR, for decades, once famously accepting vodka and warships as payment.
In a bid to support victims of the war, Lamborghini also announced it will make a donation to UN Refugee Aid to help the organization deliver "crucial and practical support on the ground." According to current numbers from the UN reported by The Washington Post, approximately 2 million people have fled the country since the conflict began in late February.
The invasion of Ukraine has already sparked fears of a new chip shortage as the country is one of the primary suppliers of neon, with the gas serving a crucial role in the semiconductor production process. Some Porsche SUV production has already been affected by supply chain issues related to the war, with unconfirmed leaks suggesting that the company's sports cars could be next.
With Russia showing no inclination to halt the invasion and stop the violence, sanctions will likely continue to ratchet up as it becomes increasingly difficult for companies to justify doing business with the belligerent nation. A swift and peaceful end to the conflict is realistically the only way that many brands will consider a return to normal trade in Russia.
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