Have we reached a time when trading in Russia is corporate suicide

Hi

I notice $PEP $KO and $MCD appear to have recently been under fire for trading in Russia. I notice recently $KO has ceased trading operations in Russia.

I was going to buy Raifaissen Bank as it’s well known in Romania. The thing that put me off is it also operates in Russia.

Are we reaching the point where activists will target any company that deals with Russia and investors (me included) are too worried to touch companies that have involvement in Russia?

P.S I do still own $KO though.

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That likely depends on what you view as activists

Twitter? sure, it’ll trend (until twitter get their eyeballs & then something else will trend)
That may then trend to more mainstream news sites reporting on ‘this was popular and look at the activists going on here!’

Personally, on blocking McDonalds, seems to be more of people wanting to make a point who cant make a point making that against russians in general (if that is a way to rise up against their leaders… them ummm)

For the companies, I think they are taking a controlled view of a local shut down and localised loss of money may be better than an actual flashback in the US/EU/etc
If the ‘situation’ resolves in 2 months then theyre not too much impacted (medium term)
if it goes longer, then thats something they’ll have to evaluate (including, re-opening given that US/EU/etc consider this is now the new usual)

If the Share price has taken a hit, probably buy… Long term things will go back to normal/improve… and if WW3 starts, well quite frankly. There might be other things to worry about instead

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Yes there is a massive amount of virtue signalling going on - some of it at a government/nation level. I was reading today of people talking about banning Dostoevsky and taking “Russian Salad”** off a restaurant’s menu. Some governments’ of countries that more or less use no Russian oil talk about banning it while keeping Russian Gas flowing.

As this opinion piece explores, the sanctions strategy is flawed:

There is much to be outraged by the vicious onslaught of the Russian government but nobody is helping to solve the problem by taking it out on the Russian people.

** I have no idea what this culinary feast of a Salad is, by the way.

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Yes I believe this is possible as big companies McDonalds, Unilever, Starbucks, Coca cola has already pause operations and there are many sanctions. This move will encourage others to follow and people to boycott companies in support. The market has already been affected so only buy if it has dropped to really low. Once this is all over, everything will go back up and operations will restart.

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These companies just don’t make any money when the rubel is falling off a cliff and they’re accounting in Dollar or Euro.
Seems like a sensible business decision to stop.

Raiffeisenbank’s profit mostly comes from Russian and Belarussian operations. I’d think twice before I’d invest.

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I am not going to buy Raifaissen Bank. It’s a household name in Romania but I’m sure more such companies will arrive on the market once more EU markets arrive.

I never have held $PEP or $MCD as of yet, just incase I appeared as if I have. Interested in $PEP and am waiting to get in at a good price.

@bitflip agreed re: Twitter virtue signallers. They are having a field day.

I know £SHEL got lambasted on social media for an oil consignment from Russia.

Many of these local business may well have borrowings in Roubles, the base rate was doubled so any index linked borrowing / refinancing they need to do just got a whole lot more expensive.

For some companies it’s an small part of their business and easy to close. Pepsi, Levi’s & McDonald’s were figure head companies that Russians craved at one point Pepsi traded bottle soft drinks for battleships with the USSR, true story.

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Some companies/corporatists do well in “un democratic” regimes

Ok so I still haven’t invested in RaifaissenBank. Why has the price gone up from €10.something to €12+?

I looked them up on yahoo finance and they are pledging to cease trading in Russia*, but this shall not be intantaneous and instead will happen over a period of time. That’s going by what I read.

Why then is the SP on the rise?

*Update Raifaissen is not ceasing trading in Russia and denies validity of any reports stating this. According to Google search.

Most price movements are market movements. Markets went up a little over the last days. Outside of clear cut economic events, nobody knows why prices rise or fall.

Focussing on a small rise when the stock has lost 50% in one month is a very selective perception.

But it seems adequately priced now given that the Russia branch makes up 1/3 of its profits. (Russia + Ukraine is 40% even).