Western financial analysts and advisers are standing by to leave Russia

Western advice and statistics were poured into Russia for three years, boosting the growth of world trade caused by the collapse of the Soviet Union.

Business organizations have sought to break geopolitical burdens in building global governments. the invasion of Ukraine urges them to consider continuing to work in Russia that is always moral, professional or political.

“I don’t know how you can stand on the ground and say it’s okay to continue working in Russia,” said the UK head of a major global statistics company. “I can’t see any reason to accept that.”

Officials said this week that statistical and negotiating groups had not discussed leaving Russia because this was a “first” time when they would rush to implement international sanctions and try to assistance to workers in Ukraine.

But on Tuesday evening, Grant Thornton became the first major oil company to go beyond rhetoric and cut ties with FBK, its 500 -member Russian company that evaluates state oil company Gazprom. , saying “the conflict in Ukraine”.

Moscow -based consulting offices McKinsey, Boston Consulting Group and Bain & Company employ about 1,000 people in total. The three said they refused to work for government agencies in Russia but none of them replaced his work in the country or stopped working for government agencies.

Outside Grant Thornton's offices in Bristol, England
Grant Thornton sold $ 21.7bn in Russia last year compared to $ 6.6bn worldwide © SFL Travel / Alamy

The top four regulators – Deloitte, EY, KPMG and PwC – employ more than 13,000 people in Russia, about 1.1 percent of their global population, through agreements with local businesses. They condemned the war but gave little details about the outcome of the fight to the customers they worked with.

Offices in Russia provide a fraction of the world’s revenue for most large -scale service companies – Grant Thornton sold $ 21.7 million in the country a year compared to $ 6.6bn. all over the world – but they are important because the coaches can give a place. “one -stop shop” serving multinational customers.

Leaving the country poses problems, leaving “a huge gap” in the ability of businesses to capture Russian businesses and the assets of multinationals, according to a major UK survey. Large -scale corporations did not leave the states during geopolitical crises, he added.

Unlike companies such as BP and Shell, which moved to release bonds to Russian oil companies Rosneft and Gazprom, the advice continued in their Russian offices.

Advisers and accountants will be asked to cut ties with Russian consumers who are vulnerable to Western sanctions, but under pressure from their staff, alumni and advertisers. go your way again.

It would be a “huge impact” if the world’s businesses stopped serving state -controlled Russian companies, said Vladimir Ashurkov, director of the Anti -Corruption Priestfounded by Alexei Navalny, an opposition activist imprisoned by the president of Russia Vladimir Putin. “[M]My experience in global finance has taught me not to expect the right decisions to be made by business services, ”he said.

In the critical case of a partner’s separation from the official line of the firm, the head of McKinsey’s 40th consulting firm in Ukraine, Oleksandr Kravchenko, said Saturday companies will close their operations in Russia and stop working for each company that the Kremlin receives about 1 percent.

Andrei Caramitru, a senior partner at McKinsey, told his international partner Bob Sternfels that he was “ashamed” not to close the Moscow office, which serves 21 of the top 30 companies. Russia.

“It’s blood money, in your hands, holding you back every day that you open,” he said. in a LinkedIn post referred to Sternfels, who he said knew their client was “affiliated with the Kremlin”. McKinsey denied the allegations.

Fear backlash

Advocates and counters of the protest against Moscow feared if the workers were punished by the Russian government or the protesters, said participants in internal talks on Monday. Business.

“We’re not worried about $ 50 million or anything else in Russia,” said one person at the Big Four. But “you don’t want workers being beaten and thrown into prison for the fall of a Kremlin status”.

The backlash could hurt their business operations, not only in Russia but around the world – the Big Four reported revenues of $ 167bn last year. At least one member of the Big Four shut down its Ukrainian offices from its global IT base last week over fears its global network had been hit by a cyber attack, a man with knowledge of it.

Large customers

The slow refusal to work for Russia’s permanent businesses also runs the risk of being banned from the country, say people in the business services industry. This work is “part and parcel of the business process in Russia”, said one.

Although Grant Thornton denied Russia was tied to Gazprom, PwC closed its German business. EY records the records of Rosneft, which is the largest shareholder in the Russian state. PwC manages Sberbank Russia’s largest bank, approved by the US. In recent weeks, EY has won an award to take the review into the future, residents say.

PwC and EY declined to speak to customers. EY said it was “reviewing new regulations and new powers regarding new penalties”.

Recent arguments

Advocates are also responsible for a network of modern world wars. Western governments may call on them to help implement their sanctions but agreeing to those agreements will invite sanctions from Moscow, the international official said in a statement. Big Four account.

In the wake of the cold war, his company will have to consider whether to reduce its Russian operations or close its offices there to serve local customers, he said. “I didn’t think of anything off the table,” he added, asking if his career could completely leave the country.

Business services companies living in Russia are unable to return income for years because of sanctions, said Jason Hungerford, a London -based colleague at Mayer Brown’s law firm.

“The drums won’t turn tomorrow, or next month, or next year. We’re in for a long haul here, ”he said.

system problem

McKinsey, BCG and Bain work as a global company with a single leadership strategy but more complex statistical operations. They are organized as a group of independent government organizations, with partners in each country and without limits. stock market on earth.

Western sanctions could not prevent their Russian companies from working for permitted jobs. However, foreign workers will not be able to serve customers who are subject to sanctions, to cut off the integration service purchased by the companies.

The sanctions could make it harder for Russian agencies to use global resources such as IT systems, finance, conflict monitoring and sales staff.

If Russia becomes economically and politically divisive, international advisers and other agencies could leave the country.

Removing a block from a global network is a slow process. But analysts are likely to try to portray the moves as “positive developments” with Russia’s affiliates cutting traditional ties from global statistical groups before waiting to be expelled. said the UK head of an accounting firm.

Global census companies may try to direct the action to their Russian counterparts later, he added.

Maybe there will be a “good” outcome. But there is publish their certification as a leader in ethics during illness – and their clients quick to release the business in Russia – selected trailblazers can be eliminated as laggards.

The next show is by Arash Massoudi

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