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

India PM Modi's party distances itself from religious conversions

BJP under fire for being slow to rein in hardline affiliate groups allegedly trying to promote a Hindu-dominant agenda by luring Muslims and Christians to convert to Hinduism More

Anti-Whaling Group Found in Contempt of Court

Radical environmentalists who threw acid and smoke bombs at Japanese whalers in the waters off Antarctica continue their campaign to disrupt Japan's annual whale hunt More

UN's Ban Urges End to Discrimination Against Ebola Workers

Ban was speaking in Guinea on the second day of a whistle-stop tour aimed at thanking healthcare workers of the countries at the heart of the epidemic 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.
Sudan School Becomes Target of Aerial Attacksi
X
December 19, 2014 12:45 AM
The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Putin Says Russian Economy Will Emerge Stronger

Russian President Vladimir Putin has said his country's sinking economy will not only recover but also become stronger, despite falling oil prices and Western sanctions over Ukraine. VOA's Daniel Schearf reports.
Video

Video Detained Turkish Journalists Follow Teachings of US-Based Preacher

The Turkish government’s jailing of critical journalists has sparked international condemnation and is being seen as an effort to undermine the followers of an ailing Turkish preacher based in the United States. VOA religion reporter Jerome Socolovsky has more.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.

All About America

AppleAndroid