Some Chemical Firms Continue Business as Usual in Russia

Russia’s invasion of Ukraine has prompted many governments to impose a wave of financial sanctions on the Putin regime and led many western companies to halt investments in the country or withdraw entirely.

Despite intense international pressure and significant operational challenges, a number of international companies including several chemical industry players, have not made any changes to their business in Russia, information gathered by the Yale School of Management’s Chief Executive Leadership Institute shows

As of April 5, a handful of international chemical manufacturing firms are still conducting business as usual in the country, according to the institute’s database.

US-based Huntsman Chemical continues to operate its production plant in Moscow, which employs about 150 workers. The US-based company is one of 128 international firms across a range of industries that received an “F” grade from the Yale-affiliated organization for “defying demands for exit or reduction of activities.”

Milliken & Co., an American manufacturer of specialty chemicals and specialty silicones, also currently has an “F” grade for its activities in Russia. While the firm does not appear to have any facilities in the country, information on its website details that Milliken Chemical does business in Russia through its regional headquarters for Europe, Africa, Middle East and Russia in Ghent, Belgium.

Yale researchers also handed an “F” to Japanese group Mitsui, which has petro-gas chemical projects under development in Russia through its affiliate, Mitsui & Co. Moscow LLC. The company also trades in petrochemical products, fertilizers and pesticides, and performance materials in the local market.  

Air Products, Exxon, and Shell have “A” grades for “totally halting Russian engagements or completely exiting Russia,” the most recent Chief Executive Leadership Institute’s list states. Chemical makers that earned “B” marks for temporarily halting most or almost all of its operations in the nation, while also keeping a door open to return at a later date, include Clorox and DuPont.

Firms that are scaling back certain parts of their business in Russia while leaving others untouched received “C” grades. Linde, PPG, and Sinopec are in this group. A “D” designation for continuing business in the market while holding off on new investments or marketing spends was given to BASF, Air Liquide, Bayer, and Henkel.