Russian Insurrection Crushed: 5 Stocks That Continue To Have Exposure To The Country

The political development in Russia over the weekend created a flutter in the international community, as Yevgeny Prigozhin, a close confidant of President Vladimir Putin and the leader of the paramilitary organization Wagner Group, revolted against the Russian military.

What Led To Revolt: Mercenary fighters of the Wagner Group on Friday took control of Rostov-on-Don, one of Russia's largest cities, and marched toward Moscow. The escalation followed a months-long feud between Russia's Ministry of Defense and Prigozhin over the Ukraine war.

The rebel leader accused the Russian military of attacking a Wagner camp and killing a large number of his men.

Putin responded to the revolt by accusing Prigozhin of treason and backstabbing and pledged to crush the rebellion.

The insurrection, however, soon ended, with Belarusian President Alexander Lukashenko stepping in to broker a peace deal between Russia and the warring faction.

In the aftermath of Russia's aggression on Ukraine that started in late February 2022, many multinational companies with operations in Russia chose to shutter business in the country.

Data from the business school IMD showed that less than 9% of companies had divested at least one subsidiary in Russia by the end of 2022.

See Also: Forex Trading In Russia

Here are five companies that have continued to do business in Russia:

1. Philip Morris International, Inc. PM: Tobacco giant Philip Morris CEP Jacek Olczak said in an interview with Financial Times in February that the company would keep its business in Russia rather than sell it on Russia's stringent terms. Russia and Ukraine, together, accounted for 8% of Philip Morris' revenue in 2022, the Financial Times report said. The strong uptake in these countries was attributed to high smoking rates and consumer willingness to switch to vapes and heated tobacco.

2. Procter & Gamble Co. PG: Although the consumer brand stalled new investments in Russia and suspended all media, advertising and promotional activity, it continues to do business in Russia. A Bloomberg report said consumer brands are tied to Russia due to the complicated balance they need to strike. They have to protect their bottom line and local staff, and retain their foothold in a major market, while also wanting not to come across as morally compromised.

3. Align Technology, Inc. ALGN: This medical device company, which manufactures 3D digital scanners and Invisalign clear aligners used in orthodontics, has kept its Russian operations. The company said on its fourth-quarter earnings call that it has incurred restructuring and other charges, primarily related to rightsizing operations in Russia.

4. Amgen, Inc. AMGN: Pharmaceutical company Amgen has its office in Moscow, although, like Align Tech, it said in the aftermath of the Russia-Ukraine war that it is suspending all non-essential business activity in the Putin-led country.

5. Cloudflare, Inc. NET: The San Francisco-based security and web performance company remained in Russia despite the Western sanctions. CEO Matthew Prince said in March 2022 that “Russia needs more unternet access, not less.”

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