Brewer Carlsberg (OTC: CABGY), Japan Tobacco (OTC: JAPAF), and a Coca-Cola (NYSE: KO) bottler were among the companies that closed factories in Ukraine on Thursday as a result of Russia’s invasion. Meanwhile, UPS and FedEx Corp (NYSE: FDX) suspended services in and out of the country.
Ukraine shut down its airspace after Russian forces attacked early, leaving budget airline Wizz Air attempting to evacuate its Ukrainian-based crew, their families, and four planes stuck in Kyiv and Lviv.
Many companies with ties to Russia are awaiting more clarity on Western sanctions while assessing the impact of those already announced.
Washington announced a slew of measures aimed at impeding Russia’s ability to conduct business in major currencies, as well as sanctions against banks and state-owned enterprises, on Thursday. It has sanctioned the company behind the Nord Stream 2 gas pipeline. European Commission President Ursula von der Leyen has stated that Brussels will deny Russia access to critical technologies and markets.
Carlsberg of Denmark, which has a 31% share of Ukraine’s beer market, has suspended production at all three breweries. In contrast, Coca-Cola HBC has activated contingency plans to close its bottling plant. Japan Tobacco has closed a cigarette plant in Kremenchuk, Ukraine.
The company is in discussions with clients about potentially substituting supplies from other sources.
The world’s largest shipping company, Maersk, has suspended port calls in Ukraine until the end of February; it closed its main office in Odesa on the Black Sea coast. Danish freight forwarder DSV has announced its closure operations in the country.
Titanium and Neon
Shares in Uniper, a German utility with significant interests in Russia and a $1 billion stake in the recently halted Nord Stream 2 project, fell on Thursday. Its controlling shareholder, Finland’s Fortum, also fell.
Wintershall Dea, another of Nord Stream 2’s financial backers, stated that the project’s suspension on political grounds meant that its operator could seek compensation.
Shares in German chemical company BASF, which co-owns Wintershall with Russian billionaire Mikhail Fridman’s LetterOne investor group and other Nord Stream 2 supporters OMV and Engie, were also hit.
Lloyds (LON: LLOY), Britain’s most significant domestic bank, warned that it was highly alert for Russian cyberattacks.
On Thursday, Rolls-Royce (OTC: RYCEY) and Safran (PA: SAF) announced increasing titanium supplies. The use of titanium has risen in recent years as aircraft manufacturers strive to make lighter planes.
