Story at a glance
- New York State Comptroller Thomas P. DiNapoli is divesting all investments in Russian companies from the state’s retirement fund.
- He’s also asking McDonald’s to reevaluate its business operations in Russia.
- Other global brands like IKEA, Nike, Visa and Mastercard have stopped operating in Russia due its invasion of Ukraine.
As Russia presses forward with its invasion of Ukraine, the New York State comptroller is urging some of the biggest American brands to stop their business operations in Russia while also prohibiting new investments in Russian companies as part of the state’s retirement fund.
New York State Comptroller Thomas DiNapoli announced that he is prohibiting all new investments in Russian companies and mandating a review of the New York State Common Retirement Fund’s investments to determine if they present any financial risk that warrant a divestment. The fund holds and invests assets on behalf of 1.1 million members, retirees and beneficiaries in New York State and its retirement system.
DiNapoli quickly followed that announcement by publishing a letter to McDonald’s CEO Christopher Kempczinski that detailed a request to conduct an examination of the fast food giant’s business in Russia and consider pausing or ending its operations in the country. New York’s retirement fund invests in McDonald’s.
“We believe that companies that continue to operate in Russia and invest in Russian assets face significant and growing legal, compliance, operational, human rights and personnel and reputational risks,” said DiNapoli.
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The letter went on to say that conditions in Russia are likely to deteriorate and companies such as McDonald’s must ensure their assets won’t become stranded or encumbered by sanctions. DiNapoli also said it’s also about “condemning Russia’s role in fundamentally undermining the international order that is vital to a strong and healthy global economy.”
DiNapoli wrote similar letters to other major American brands, including beverage company PepsiCo and cosmetic brand Estée Lauder, according to Reuters.
“The crisis has underscored major political and investment risks relating to President Putin’s unhinged, tyrannical foreign policy, leading to sanctions that have significantly hobbled Russia’s already weak economic growth,” said Napoli, in a statement.
He went on to say that New York stands with the Ukrainian people.
McDonald’s continues to operate in Russia. Changing America has requested comment from the company.
The move by DiNapoli comes after New York Gov. Kathy Hochul (D) issued an executive order directing all New York state agencies and authorities to review and divest public funds from Russia following its attack on Ukraine.
Furniture company IKEA has announced it is pausing all exports and imports from Russia and Belarus while also pausing all retail operations in the country. Sportswear brand Nike also said it would temporarily close all stores in Russia while also donating $1 million to the United Nations Children’s Fund and the International Rescue Committee to support relief efforts, according to Reuters.
Netflix announced it would be suspending its streaming service in Russia as well as pausing all future projects and acquisitions in the country.
Financial institutions are also bringing the hammer down on Russia, with Visa and Mastercard announcing they would also be suspending their operations in the country.
“We regret the impact this will have on our valued colleagues, and on the clients, partners, merchants and cardholders we serve in Russia. This war and the ongoing threat to peace and stability demand we respond in line with our values,” Al Kelly, CEO of Visa Inc., said in a statement.
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