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

UN Ambassador Power Highlights Plight of Women Prisoners

She launches the 'Free the 20' campaign, aimed at profiling women being deprived of their freedom around the world More

Satellite Launch Sparks Spectacular Light Show

A slight delay in a satellite launch lit up the Florida sky early this morning More

Fleeing IS Killings in Syria, Family Reaches Bavaria

Exhausted, scared and under-nourished, Khalil and Maha's tale mirrors those of thousands of refugees from war-torn countries who have left their homes in the hopes of finding a better life More

This forum has been closed.
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.
Nobel Prize Winner Malala Talks to VOAi
August 31, 2015 2:17 AM
Nobel Peace Prize winner Malala Yousafzai met with VOA's Deewa service in Washington Sunday to talk about women’s rights and unveil a trailer for her new documentary. VOA's Katherine Gypson has more.

Video Nobel Prize Winner Malala Talks to VOA

Nobel Peace Prize winner Malala Yousafzai met with VOA's Deewa service in Washington Sunday to talk about women’s rights and unveil a trailer for her new documentary. VOA's Katherine Gypson has more.

Video War, Drought Threaten Iraq's Marshlands

Iraq's southern wetlands are in crisis. These areas are the spawning ground for Gulf fisheries, a resting place for migrating wildfowl, and source of livelihood for fishermen and herders. Faith Lapidus has more.

Video Colombians Flee Venezuela as Border Crisis Escalates

Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.

Video Rebuilding New Orleans' Music Scene

Ten years after Hurricane Katrina inundated New Orleans, threatening to wash away its vibrant musical heritage along with its neighborhoods, the beat goes on. As Bronwyn Benito and Faith Lapidus report, a Musicians' Village is preserving the city's unique sound.

Video In Russia, Auto Industry in Tailspin

Industry insiders say country relies too heavily on imports as inflation cuts too many consumers out of the market. Daniel Schearf has more from Moscow.

Video Scientist Calls Use of Fetal Tissue in Medical Research Essential

An anti-abortion group responsible for secret recordings of workers at a women's health care organization claims the workers shown are offering baby parts for sale, a charge the organization strongly denies. While the selling of fetal tissue is against the law in the United States, abortion and the use of donated fetal tissue for medical research are both legal. VOA’s Julie Taboh reports.

Video Next to Iran, Climate at Forefront of Obama Agenda

President Barack Obama this week announced new initiatives aimed at making it easier for Americans to access renewable energy sources such as solar and wind. Obama is not slowing down when it comes to pushing through climate change measures, an issue he says is the greatest threat to the country’s national security. VOA correspondent Aru Pande has more from the White House.

Video Arctic Draws International Competition for Oil

A new geopolitical “Great Game” is underway in earth’s northernmost region, the Arctic, where Russia has claimed a large area for resource development and President Barack Obama recently approved Shell Oil Company’s test-drilling project in an area under U.S. control. Greg Flakus reports.

Video Philippine Maritime Police: Chinese Fishermen a Threat to Country’s Security

China and the Philippines both claim maritime rights in the South China Sea.  That includes the right to fish in those waters. Jason Strother reports on how the Philippines is catching Chinese nationals it says are illegal poachers. He has the story from Palawan province.

Video China's Spratly Island Building Said to Light Up the Night 'Like A City'

Southeast Asian countries claim China has illegally seized territory in the Spratly islands. It is especially a concern for a Philippine mayor who says Beijing is occupying parts of his municipality. Jason Strother reports from the capital of Palawan province, Puerto Princesa.

Video Ages-old Ice Reveals Secrets of Climate Change

Ice caps don't just exist at the world's poles. There are also tropical ice caps, and the largest sits atop the Peruvian Andes - but it is melting, quickly, and may be gone within the next 20 years. George Putic reports scientists are now rushing to take samples to get at the valuable information about climate change locked in the ice.

VOA Blogs