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BRNO

Goodbye, Russia. Dozens of Czech companies have already ended up doing business in the east

Sugar Mizzy May 21, 2022

You can also listen to the article in audio version.

According to the Ministry of Industry and Trade, dozens of Czech companies operate on the Russian market. However, the interest in the Russian market among domestic entrepreneurs decreased after the annexation of Crimea in 2014 and with the invasion of Ukraine it fell even more. They were forced to do so not only by the Russian war in the neighboring country, but also by outages in the supply chain.

The companies have reconsidered their activity in the country and are beginning to withdraw from Russia or break ties with local suppliers. The Czechia mainly imports machines to Russia, but companies supplying the automotive industry also do business there.

“Some sectors of Czech business in Russia are hit hard, such as engineering, the aviation sector and the like. On the contrary, others, also for humanitarian reasons, continue to operate. The Ministry is in contact with the affected companies and tries to assist them in the transition to alternative markets, “says David Hluštík, a spokesman for the Ministry of Industry and Trade.

Companies across sectors are represented in the list. For example, a carmaker withdrew from the country Skoda car, which will lose the market, which last year sold over 90 thousand cars. In response to the invasion, it suspended production at its plants in Kaluga and Nizhny Novgorod and also stopped exporting cars to Russia.

Another company that operated in Russia is Brno Zetor tractors. The tractor manufacturer has terminated all previous cooperation with Russia, which may affect 14 percent of its sales.

The Czech gearbox manufacturer also has production in Russia Motor Wikovwhich interrupted production due to the conflict in Ukraine and is unlikely to resume it by the end of the war.

Cooperation with Russia was also interrupted by some domestic technology companies. Jablonec company Jablotron, which belongs to the 59th richest Czech Dalibor Dědek, disconnected the country from its security systems. Even before this step, however, Jablotron stopped all sales of its products to Russia, even through intermediaries.

Manufacturer of timing and imaging equipment Elekon in protest against the Russian invasion of Ukraine at a distance turned off the clock at the Russian Academy of Sciences in Moscow. Another technology company that has left Russia is a supplier of communications networks TTC.

Czech companies in Russia are also shutting down their e-shops. For example, a cosmetics retailer did so Notino. The cooperation with the Russians was also interrupted by a shop of musical instruments Kytary.cz. “We have good relations with our Russian partners, but due to the extraordinary situation, we do not want to send a ruble to Russia now,” the company explained.

The richest Czech Renáta Kellnerová is also getting rid of business in Russia and has sold an agricultural enterprise RAV Agro of Zemelnyj Reverse. The company cultivates cereal fields in Russia and operates dairy farms. Next in line was Russian Home Creditwhich PPF sold a group of investors led by Ivan Tyryshkin, thus ending its banking activities in Russia.

The exodus of companies in the field of engineering will fall on Russia. Among them is, for example, a design company in the field of mining technology T Machinerymanufacturer of pumping technologies Sigma Groupblower manufacturer Kubíček VHSmachine tool manufacturer Toshulinengineering company Žďas or rubber and rubber manufacturers Trelleborg Bohemia.

Domestic beverage companies have also stopped supplying Russia. Among them is a producer of mineral water Mattoni 1873. Beer producers have also suspended operations in the country Budweiser Budvar, Pilsner Urquell AND Breweries Staropramen.

Among the Western companies that are turning their backs on Russia due to the invasion of Ukraine are, for example, the technology giant Apple, the carmakers Ford, Volkswagen and Porsche. Airbus and Boeing aircraft manufacturers have also stopped their business activities here. The Russian market is also boycotted by the clothing company H&M, which has temporarily closed its 168 stores here, and the furniture chain IKEA has taken the same step.

However, this is only a fraction of the companies that have withdrawn from the country since the end of February. After two months of war, there were over 400 such businesses, according to the New York Times.

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