The Russian-Ukraine conflict has affected several industries in the world, including some notable car companies are poised to cease operations in Russia.
Ford, Volvo, Boeing, GM Cars, and More Suspend Business Operations
Following the sanctions given by the President of the United States, Joe Biden, to Russia, several car manufacturers have been suspending their operations in the said country.
According to the Financial Times, American car manufacturer Ford announced that it is ceasing operations in the region with its Russian joint venture partner Sollers.
"The situation has compelled us to reassess our operations in Russia," Ford explained as the suspension of their operations in Russia began immediately until further notice. The company's primary motivation for the move was the numerous Ukrainian nationals working for Ford around the world.
With regards to the car manufacturer's operation in Russia, the company is focusing on commercial van manufacturing and Russian sales through the Sollers Ford joint venture. Financial Times emphasized that Ford and Sollers collaborated last 2011 to manage the Elabuga Assembly Plant in the Republic of Tatarstan.
Before Ford's move, the Swedish automaker Volvo Cars is also ceasing its operation in the largest country in the world.
Reuters reported that the car manufacturer announced on Monday, Feb. 28 that it will halt car shipments to Russia until further notice. Through this initiative, Volvo became the first worldwide automaker to cease operations as the sanctions against Moscow for its invasion of Ukraine continue to progress.
To emphasize the decision made behind its halting, the Swedish car company stated in a press release acquired by Reuters that there are "potential risks associated with trading material with Russia, including the sanctions imposed by the EU and US."
For this matter, Volvo also clarified that they will not deliver any vehicles to the Russian market until further notice. Volvo previously regularly exported vehicles to Russia from their Sweden, China and US plants.
Similar to other car manufacturers, General Motors (GM) also announced on Monday that all vehicle exports to Russia would be halted until further notice, per another Reuters report. The Detroit automaker sells approximately 3,000 vehicles in Russia each year and has limited supply-chain exposure.
The flurry of operation stoppages does not end with car manufacturers. Financial Times also noted that the aerospace company and leading manufacturer of commercial jetliners and defense, Boeing, also announced on Tuesday, March 1 that it will be suspending its major operations in Russia.
In addition to the suspension, the aerospace giant will also be halting parts, maintenance, and technical support services for Russian airlines.
Other Goods Affected by Ukraine War
Aside from the car manufacturers, other industries are also affected by the Russia-Ukraine conflict.
Business Standard noted that several European countries are relying on Russian energy, notably gas, which is transported through numerous critical pipelines, and this may have influenced their response to the crisis.
In addition to the affected goods, the wheat exports will also be affected by the ongoing conflict. Russia and Ukraine export a massive number of the world's wheat, while Ukraine alone exports nearly half of the world's sunflower oil.
For those unfamiliar, both wheat and sunflower oil are important ingredients in a variety of food.
