More US companies to cut ties with Russia, says labor secretary

Labor Secretary Marty Walsh said he expects many more American companies to follow Microsoft Corp. and cut ties with Russia, with no signs of the war in Ukraine ending.

“We have to do everything we can in every place we can to support the Ukrainian people.” Walsh told Jon Ferro Friday on Bloomberg TV. “I think there will be many more companies in the United States,” and in other parts of the world, that “will take action like this against Russia.”“, he claimed.

The technology company announced on Friday that it will suspend the sale of new products and services in Russia, while condemning the country’s invasion of Ukraine. The Russian attack intensified overnight after the attack on a nuclear power plant in Ukraine which is the largest atomic generator in Europe.

Companies in the United States and many allied nations in Europe and Asia are cutting trade ties with Russia, as governments seek to isolate and punish the country for President Vladimir Putin’s actions in Ukraine.

Some major economies, such as China and India, have been more reticent about applying financial sanctions.

Walsh said that if sanctions are placed on Russian oil exports, a move some lawmakers have urged but President Joe Biden has so far resisted, there will be repercussions for American consumers.

“As the supply of oil from Russia is reduced, if that is what happens, we will see a rise in gasoline pricesWalsh said.

“I’m sure there are conversations” ongoing between US oil producers and the White House, Walsh noted, though he added that he is not personally aware of any and has not been involved.