Following the Russian invasion of Ukraine, a number of large American corporations described their efforts to leave the country.
With the war about to enter its sixth month, the Moral Rating Agency has released new data on 114 of the world’s largest companies involved with Russia at the time of its invasion of Ukraine. The Agency was created to examine whether the promises of companies to leave Russia were fulfilled, and their investigation includes both American and foreign companies.
Only seven companies, including the parent company of Google Alphabet Inc. GOOGL,
and Amazon.com Inc. AMZN,
he had completely abandoned all his activities in Russia, according to the new study. More than 60 companies fell into a category of making a retreat that only covered part of their activities, was not fully realized, or both. Another 44 companies were classified as still in Russia.
“The devil is in the details,” Moral Rating Agency founder Mark Dixon told MarketWatch. The research looked at the “degree” to which companies have left Russia.
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Chevron is among the largest U.S. companies classified in the investigation as “only partially out.”
The moral rating agency points to Chevron Corp.’s CLC.
participation in the Caspian oil pipeline, which connects the Tengiz and Karachaganak deposits in Kazakhstan with a dedicated export terminal at Novorossiysk in Russia. Chevron has a 15% minority stake in the Caspian Pipeline Consortium.
On its website, the agency offers a more detailed analysis of the companies surveyed by applying five “moral ratings”. In addition to the “degree” of a company’s exit, it also measures the speed of action and the “attitude” of the exit, which includes any complaints from Russia and donations to Ukraine. Other criteria used by the Agency include the level of “sacrifice” involved in leaving a company and its impact on Russia on leaving the country.
While Chevron was able to reduce its trade with Russia easily in response to sanctions, the Moral Rating Agency says on its website that the CPC’s involvement “cannot be swept under the rug.”
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In a statement, Chevron told MarketWatch that it has no exploration or production activity in Russia.
“Chevron’s stake in Russia is related solely to its 15 percent stake in the Caspian Pipeline Consortium (CPC), which transports crude oil from Kazakhstan to global markets,” the company said. “The CPC is a key export route for Kazakhstan’s crude oil production to reach international markets and many countries depend on this transportation system critical for their energy security.”
Chevron added that, given current supply concerns, access to Kazakh power supplies is very important for consumers around the world. “Chevron crude oil transported through the Caspian gas pipeline is produced in Kazakhstan, enters the gas pipeline in Kazakhstan and carries a certificate of origin from Kazakhstan.”
The Moral Rating Agency website also states that 20% of the oil transported through the Caspian pipeline is of Russian origin. “So far, CPC has managed to fly under the moral radar,” Dixon told MarketWatch.
A person with knowledge of the matter, who asked not to be named, told MarketWatch that the percentage of oil of Russian origin is closer to 10%.
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The Moral Rating Agency also claims that Ford Motor Co. F,
maintains a presence in Russia through Sollers Ford, a joint venture van manufacturing company in which it is a minority shareholder.
In a statement issued on March 1, Ford said it has significantly reduced its Russian operations in recent years. “Given the situation, today we informed our JV partners that we will suspend our operations in Russia, with effect immediately, until further notice,” he said.
In 2019, the joint venture closed two production plants and an engine plant in Russia, leaving a single production plant in the Moscow area. A Ford spokesman told MarketWatch that with the suspension of operations, the plant is now inactive. “The plant does nothing,” he said, noting that Ford does not provide computer support, engineering support or parts to the plant. “We are not making transactions in Russia. Point,” the spokesman added.
Ford donated $ 100,000 to the Global Giving Ukraine Humanitarian Aid Fund, according to its statement released on March 1st. “While we do not have major operations in Ukraine, we do have a strong contingent of Ukrainian nationals working at Ford around the world. And we will continue to support them during this time,” he said in a statement.
In April, Ford CEO Jim Farley tweeted that the company had donated 50 Ford Rangers to Ukraine’s relief efforts.