News / Europe

US Companies Watch, Wait as Ukraine Crisis Unfolds

FILE - Russian Prime Minister Vladimir Putin, right, shakes hands with Rex W. Tillerson, chairman and chief executive officer of Exxon Mobil Corporation at their meeting in the in 2012.
FILE - Russian Prime Minister Vladimir Putin, right, shakes hands with Rex W. Tillerson, chairman and chief executive officer of Exxon Mobil Corporation at their meeting in the in 2012.

Related Articles

Kremlin: Politics Must Not Affect Paralympic Games

Russian president tells Ukraine's paralympic committee chief that a sports celebration 'must not be under the influence of ... the international agenda or politics'

Roundup: Opinions on Ukraine From American and Foreign Media

A sampling of op-ed pieces about the ongoing crisis in Ukraine

Video On The Scene: Daniel Schearf in Kyiv

Russia's moves to take Crimea are not well viewed by people in Ukraine's capital
U.S. businesses with exposure in Russia and Ukraine are waiting and watching to see how the tensions between Russia and the U.S. take shape in the coming weeks.

“Obviously, the things that are happening are quite terrible and will affect the business environment,” said Sergio Millian, president of the Russian-American Chamber of Commerce, which represents some 200 companies with economic interests in Russia. “We’re advising our members to make a short pause in investing in Russia and wait to see what Russia and the U.S. do."

Russia is not among the top 15 trading partners with the U.S., but the U.S. exported just over $11 billion worth of goods, mostly machinery, to Russia in 2013, according the U.S. Census. Russia, meanwhile, exported nearly $27 billion worth of goods, mostly oil and gas to the U.S.

Several large U.S. corporations such as Boeing, Cargill, General Motors and Exxon have substantial investments in Russia.

Boeing, for example, said they had completed contracts in Russia and the CIS worth $7.5 billion from 1991 to 2013.

According to the Boeing, Russia/CIS will need approximately 1,170 new airplanes of various types valued at nearly $140 billion, over the next 20 years.

According to Doug Alder, a spokesman for Boeing, the company is standing by for the time being.

“We are watching developments closely to determine what impact, if any, there may be to our ongoing business and partnerships in the region,” he wrote in an email. “We won’t speculate on the potential impact of sanctions or any other potential government actions.” 

Cargill, a large food processing and agricultural corporation, has been involved in the Ukrainian market for 20 years, according to the company.

The company, which supplies Ukrainian farmers with crop protection products, seeds and fertilizers and then purchases the grain and oilseeds produced, also said it was not commenting on the ongoing situation in Ukraine.

Exxon announced earlier in the week it was putting an offshore natural gas project on hold while the political situation there unfolds, but said they were continuing with investments in Russia, including a Black Sea project near Crimea.

“As for the current situation, obviously it’s early days,” Rex Tillerson, Exxon Mobil’s chairman and CEO told the Dallas Morning News. “There’s been no impact on any activities or plans at this point, nor would we expect there to be any, barring governments taking steps beyond our control.

General Motors did not respond to a request for information.

Meanwhile, the U.S. is still contemplating the use of sanctions that could have a major impact on U.S.-Russian trade.

Earlier in the week, Secretary of State John Kerry tweeted that the G8 “will not engage with Russia as business as normal” and that “Russia [is] inviting trade isolation.”

Some wonder about how effective sanctions would be.

Alexis Rodzianko, president of the American Chamber of Commerce in Russia told Reuters it was “very unlikely” that Russia was going to be cut off from the world because of the raw materials it supplies, particularly energy.

You May Like

EU Court Fines Poland for Hosting CIA 'Black Sites'

Ruling is first time a court has acknowledged suspects were held and tortured at the sites, under US program launched following the 9/11 terrorist attacks More

Migrant Issues Close to Home Spur Groups to Take Action

Groups placing water, food in the desert, or aiding detainees after release, have one common goal: no more deaths of migrants crossing illegally into the US More

Video At AIDS Conference, Prevention Pill Stirs Excitement

Truveda shows promise, spurring debate over access and other approaches More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Israel Targets Gaza Supply Tunnelsi
X
July 24, 2014 4:42 AM
The Israeli military has launched a ground operation in Gaza to destroy the myriad tunnels that may have been used to smuggle weapons to Hamas. VOA's Zlatica Hoke reports that could mean more hardship for the people of Gaza, who obtain some of their essential supplies through these underground passages
Video

Video Israel Targets Gaza Supply Tunnels

The Israeli military has launched a ground operation in Gaza to destroy the myriad tunnels that may have been used to smuggle weapons to Hamas. VOA's Zlatica Hoke reports that could mean more hardship for the people of Gaza, who obtain some of their essential supplies through these underground passages
Video

Video MH17's 'Black Boxes' Could Reveal Crash Details

The government of Malaysia now has custody of the cockpit voice and flight data recorders from Malaysia Airlines Flight 17, which was hit by a missile over Ukraine before crashing last week. As VOA's Carolyn Presutti reports, the so-called black boxes may hold information about the final minutes of the flight.
Video

Video Living in the Shadows Panel Discussion

Following a screening of the new VOA documentary, "AIDS - Living in the Shadows," at the World AIDS conference in Melbourne, a panel discussed the film and how to combat the stigma associated with HIV/AIDS.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.
Video

Video Relic of Saint Draws Catholics Worried About Immigration Issue

A Roman Catholic saint who is a figure of devotion for those crossing the border into the United States is attracting believers concerned about the plight of undocumented immigrants. Mike O'Sullivan reports from Los Angeles, where a relic of Saint Toribio has drawn thousands to local churches.
Video

Video US Awards Medal of Honor for Heroics in Bloodiest of Afghan Battles

U.S. combat troops are withdrawing from Afghanistan, on pace to leave the country by the end of this year. But on Monday, U.S. President Barack Obama took time to honor a soldier whose actions while under fire in Afghanistan earned him the Medal of Honor. VOA's Jeff Seldin has more from the Pentagon.
Video

Video Ukraine Rebels Surrender MH17 Black Boxes

After days of negotiations, a senior separatist leader handed over two black boxes from an airliner downed over eastern Ukraine to Malaysian experts early Tuesday. While on Monday, the U.N. Security Council unanimously demanded that armed groups controlling the crash site allow safe and unrestricted access to the wreckage.
Video

Video In Cambodia, HIV Diagnosis Brings Deadly Shame

Although HIV/AIDS is now a treatable condition, a positive diagnosis is still a life altering experience. In Cambodia, people living with HIV are often disowned by friends, family and the community. This humiliation can be unbearable. We bring you one Cambodian woman’s struggle to overcome a life tragedy and her own HIV positive diagnosis.

AppleAndroid