Amid the rising uncertainty and increasing pressure on the global corporate world to exit the Russian market, several companies including TotalEnergies, Mars Inc- maker of KitKat, and Pedigree, clothing major Uniqlo, Mondelez International among others are continuing with their operations.
Japanese clothing major Uniqlo, for instance, has refused to shut its operations in Russia saying that “clothing” is a necessity.
The French energy major TotalEnergies which has 19 per cent stake in the Russia oil firm Novatek (NVTK.MM) has also remained silent on the current ongoing geopolitical situation.
More than 1000 French companies are currently active in Russia, reports suggested. “Although they feel the impact of the war, launched on Feb. 24 through weakening ruble and higher interest rates, many French firms are still hesitant to jump out of the boat,” Turkey based Anadolu Agency said.
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The stringent sanctions against Moscow imposed by the US and European Union have not yet impacted daily lives in the Russian hinterland. Anna Koroleva, senior journalist and analyst engaged with Russian business weekly ‘Expert’ told India Narrative that so far there has been no shortage in supplies of food and essential items and the ATMs continue to function normally.
“In the first day or two, some Russians hurried to withdraw money from ATMs. But there is no panic now. The central part of the country has not been significantly affected though many suppliers have raised prices due to higher logistics costs. We see an increase in prices but is still within the range,” Koroleva said, adding that while Russians are not happy with the war they are opposed to NATO’s increasing dominance in the region.
According to Koroleva, there was panic among citizens in the first couple of days of the Russian invasion of Ukraine and many rushed to withdraw money from ATMs. But she claimed that the panic was also created due to misinformation that the people’s savings would be lost. Many social media posts including Facebook publications put out information that said that the deposits will be arrested. “This was aimed at destabilizing the situation in the financial system,” she said.
“Now no one is withdrawing anything from ATMs, plastic cards are working, we have our own payment system – Mir, which has long been used by all pensioners and those who receive social support,” Koroleva said.
Also read: Surge in crude oil prices due to Ukraine war hits global economy
Developed indigenously by Russia’s central bank, Mir is the payment system used for electronic fund transfers within the country.
“We are against the war, no one likes it, many are afraid and worried, especially in areas close to Ukraine. But we are ready to go to hardships to prevent Nazism from entering Russia,” she said.
