When the world gets closer.

We help you see farther.

Sign up to our expressly international daily newsletter.

Economy

Let's Not Be Naive: A French Take On War Profiteering

French firms TotalEnergies and Renault announced they were, over time, suspending their activities and halting production in Russia after being widely criticized for their inaction since the invasion of Ukraine. But leaving Russia doesn’t have the same cost or the same consequences for all companies. And we should calculate in who will profit later.

Photo of a shadowy silhouette outside  a ​currency exchange office in Moscow on March 2.

At a currency exchange office in Moscow on March 2.

David Barroux

-OpEd-

PARIS — Companies that decide to cut ties with Russia are not all in the same boat. Some like Apple — which can no longer deliver iPhones to the country isolated from the rest of the planet — only take minimal risks. They forego limited and temporary revenues, hoping that the day will come when the war stops and Russia finds some semblance of normalcy, and their business can resume.

Stay up-to-date with the latest on the Russia-Ukraine war, with our exclusive international coverage.

Sign up to our free daily newsletter.

It is not so simple for several of the largest French companies, which were among the very first foreign investors in post-Soviet Russia and control numerous assets in the country. These multinationals that have invested billions (from retail group Auchan to energy giant TotalEnergies, automaker Renault and Société Générale bank) have much more to lose by breaking with Vladimir Putin.


In the short term, they deprive themselves of a profitable market, and of growth potential in the medium term. If Russia ends up regaining a positive reputation, those who have made the decision to leave will never be able to completely come back. Sanctions are not permanent. Departures are.

Photo of people walking by an Auchan supermarket in Moscow\u200b

An Auchan supermarket in Moscow

A. Savin

Short-term actions, long-term uncertainty

In the current context, these decisions, even if they may seem hasty to some, are understandable. Public opinion can be a bit too ready to call any company still active in Russia an immoral “war profiteer” when these companies sometimes play a crucial role for us (like TotalEnergies), for millions of Russian citizens (like Auchan or Danone) or for thousands of employees (like Renault). But beyond this backlash, staying active in a country that will be completely isolated is not easy.

Who will the benefits go to then?

Supply chains have been disrupted, local revenues are threatened and the Russian adventure could cause cash losses likely to weaken groups globally. When facing uncertainty, it may be appropriate to take drastic actions on the spot, especially since even in the event of peace, Russia has become such an unpredictable partner that it will be difficult to continue to invest there.

Still, let's not be naive. There’s no doubt that the assets that our companies are forced to give up or sell will be seized by the Russian state — or sold off to the oligarchs! And tomorrow, when time has allowed wounds to heal, will Europe continue to impose sanctions on Moscow or will it open its doors wide again to Russian products? If that happens, will the benefits go to those who developed them, or someone else? The real war profiteers may not be who we think they are.

You've reached your monthly limit of free articles.
To read the full article, please subscribe.
Get unlimited access. Support Worldcrunch's unique mission:
  • Exclusive coverage from the world's top sources, in English for the first time.
  • Insights from the widest range of perspectives, languages and countries
  • Affordable monthly / yearly plans. Cancel anytime.
Already a subscriber? Log in

When the world gets closer, we help you see farther

Sign up to our expressly international daily newsletter!
Ideas

Rishi Sunak May Become Britain's First Hindu Prime Minister — A Lesson For India

Rishi Sunak, a Hindu of Indian origin, is in the running to become the UK's next prime minister. His religion has not factored at all into debates — a fierce contrast to a religiously divided India.

Rishi Sunak speaking with India's Finance Minister in October 2020

Kancha Ilaiah Shepherd*

This article was updated on October 23 at 5:45 p.m. EST

-Analysis-

NEW DELHI — Rishi Sunak, a British politician of Indian origin, is now the clear frontrunner to be the next prime minister of the United Kingdom after Boris Johnson''s announcement that he won't seek the leadership of the Conservative party following the resignation of Prime Minister Liz Truss.

Sunake is the most recent person of Indian descent in the West to try to reach the political pinnacle, coming on the heels of Kamala Harris’s arrival as U.S. vice president.

Britain was once the colonial master of India. From an Indian point of view, the British prime minister is the historical political head of an empire of exploitation – and also, let us remember, an empire of reform. Were it not for British colonial rule, and the rights-oriented struggle for freedom against it, India would not have become a democratic, constitutional republic in 1947, however loudly we claim that the roots of our democracy lie in our ancient structures, whether Hindu or Buddhist.

All major aspects of our freedom struggle and colonial life were linked to the British political system. Particularly from the beginning of the 20th century, Indians considered the British prime minister the symbol of colonial rule, the man to revile or to appeal to.

Given this historical context, that a man of Indian origin stands a realistic chance of becoming the British prime minister shows how the world is changing.

Keep reading...Show less

When the world gets closer, we help you see farther

Sign up to our expressly international daily newsletter!
You've reached your monthly limit of free articles.
To read the full article, please subscribe.
Get unlimited access. Support Worldcrunch's unique mission:
  • Exclusive coverage from the world's top sources, in English for the first time.
  • Insights from the widest range of perspectives, languages and countries
  • Affordable monthly / yearly plans. Cancel anytime.
Already a subscriber? Log in
THE LATEST
FOCUS
TRENDING TOPICS

Central to the tragic absurdity of this war is the question of language. Vladimir Putin has repeated that protecting ethnic Russians and the Russian-speaking populations of Ukraine was a driving motivation for his invasion.

Yet one month on, a quick look at the map shows that many of the worst-hit cities are those where Russian is the predominant language: Kharkiv, Odesa, Kherson.

Watch VideoShow less
MOST READ