Companies close their operations in Ukraine and monitor sanctions for Russian attacks

Danish brewer Carlsberg and a Coca-Cola bottler closed their plants in Ukraine on Thursday following the Russian invasion, as companies making products ranging from jet engines to semiconductors warned that supplies of raw materials could be affected.

Carlsberg, which has a 31% share of the Ukrainian beer market, halted production at its three breweries in the country, while Coca-Cola HBC said it had put contingency plans in place that included closing its plant. of bottling.

Britain’s largest national bank, Lloyds, meanwhile, warned it was on high alert for cyberattacks from Russia, while companies operating in Ukraine considered how to protect their staff from the conflict.

Russian forces invaded Ukraine by land, sea and air on Thursday, confirming the West’s worst fears with the largest state-on-state attack in Europe since World War II.

Many companies with significant exposure to Russia said they are still waiting to see the full force of Western sanctions before deciding on any action, although the Nord Stream 2 pipeline has already been affected by Washington’s sanctions.

Shares in German company Uniper, which has power plants in Russia and a $1 billion exposure to Nord Stream 2, plunged on Thursday and its majority shareholder.

Shares in German chemical firm BASF, which co-owns Wintershall with Russian billionaire Mikhail Fridman’s investment group LetterOne, fell 5.6%, while other companies backing Nord Stream 2, OMV and Engie also fell.

Other international companies with staff in Ukraine, such as Swiss consumer goods giant Nestle, said they were closely monitoring the situation and that staff safety was their top priority. Nestlé has been in Ukraine for more than 25 years and has three factories and some 5,000 employees.

Jet engine makers Rolls-Royce and Safran said on Thursday they had increased supplies of titanium as Western aerospace firms brace for fallout from the Ukraine crisis.

Titanium, much of it supplied by Russia, has been used in aircraft engines for decades, but its use has skyrocketed in recent years as planemakers try to make them lighter.

Big chip companies said they expected limited supply chain disruption from the conflict for now, thanks to stockpiling and diversified acquisitions, but some industry sources said there could be a further impact. long term.