Most people and companies try do the right thing and doing the right thing involves staying on the correct side of the laws. We all know countries have alignments and various political parties do things for their benefit but generally it is supposed to help the average mytical person. When Russia invaded Ukraine, even though the economy is a large one which means there are many areas of interdependence, there were sides to be taken. Europe and the US imposed sanctions on Russia, and the issue is how well is that doing?

In an article by David McHugh of the Associated Press, after sanctions were imposed on Russia, companies tried to unwind their holdings writing off billions of dollars worth of factories, energy holdings and investments.

A year later, it is clear, leaving Russia was not as simple as it was first announced. Increasing Russia is becoming the biggest hurdle. If a company want out, they have to require approval from President Putin which in reality can take years.

Many companies are simply staying put, because it is easier and everyone is hoping for a reason resolution to the invasion.

For consumers in Moscow, what they can buy has not changed much. Some of the companies names have changed but the products remain very similar.

Over 1,000 international companies have publicly said they are voluntarily curtailing Russian business beyond what is required by sanctions, according to a database at Yale University. However the Kremlin is adding more requirements plus an understanding that companies would sell at 50% discount. The buyers tend to be friends of Mr. Putin or well connected to his government.

Linking to dividend paying stocks, you like the company’s products and services are bought by a diversified country base which limits the potential of economy cycles on the sales. However, each country carries a potential risk and leaving can be difficult unless the country’s structures fall apart. When the economy’s structures remain, the market functions and it is difficult to leave because in this case the sanctions could be eventually lifted, then what? The decisions are often difficult to make but the company has to rely on its ethics and governance for guidance.

There are more questions than answers, till the next time – to raising questions.