Russian President Vladimir Putin appears to be dealing with some unforeseen consequences after invading Ukraine. A significant number of major US corporations are pulling out of Russia in response to the Kremlin’s decision to initiate military hostilities. While backlash from the international community may have been expected, the reaction from big business joining in the global protest has taken place on a larger scale than many anticipated.

Russia’s invasion prompted Western companies from various industries to protest the Kremlin’s actions in Ukraine; in several cases after social media campaigns pressured them to make a statement. Some have temporarily ceased operations in the country; others are completely pulling out of the region.

No More Fun

Disney is one of the more noteworthy corporations to take action against the Russian government. It halted theatrical releases in the country on March 8. In a statement, the company said: “Given the unprovoked invasion of Ukraine and the tragic humanitarian crisis, we are pausing the release of theatrical films in Russia, including the upcoming ‘Turning Red’ from Pixar.” Online travel-booking company Expedia also joined the effort and stopped providing travel services in and out of Russia. A spokesperson for the company told Business Insider: “We are saddened by what continues to unfold in Ukraine and will continue to do what we can to support impacted travelers, partners, and our team members with families and friends in the affected areas.”

Russians craving Big Macs will have even more reason to be upset with Putin as McDonald’s announced it would temporarily shut down 850 locations in the country. CEO Chris Kempczinski wrote a letter to franchisees and employees, notifying them that the chain will halt all operations in Russia and will continue paying its Russian employees. CNBC pointed out that the company “has long played a symbolic role in Russia as well. The chain opened its first location in the Soviet Union 32 years ago in Moscow, months before the state collapsed.”

Other food and drink retailers also decided to part ways with Russia – at least temporarily. Starbucks, Pepsi, and Coca-Cola all suspended operations.

Big Oil and Big Money

ExxonMobil is one of several gas companies taking action against Moscow. Business Insider reported that the company “would begin the process to discontinue operations and develop steps to exit the Sakhalin-1 venture, a project it operates on behalf of an international consortium of Japanese, Indian, and Russian companies. Per the Sakhalin-1 website, it is one of the largest single international direct investments in Russia.” In a statement, ExxonMobil said it “supports the people of Ukraine as they seek to defend their freedom and determine their own future as a nation. We deplore Russia’s military action that violates the territorial integrity of Ukraine and endangers its people.”

Online finance company PayPal also declared it would suspend service in Russia. CEO Dan Schulman wrote a letter to Ukrainian Vice Prime Minister Mykhailo Fedorov affirming its support. The Ukrainian official shared the letter on Twitter, which read: “Under the current circumstances, we are suspending PayPal services in Russia. We are also doing all that we can to support our staff in the region during this deeply difficult time.”

Visa, Mastercard, and American Express have also taken the anti-Putin plunge and withdrawn from the market until a more peaceful state of balance is resumed.

Vice or Virtue?

(Photo by Justin Sullivan/Getty Images)

So what should one make of this? Is this an example of the type of corporate virtue signaling to which America has become accustomed, particularly since the murder of George Floyd? It wasn’t long ago that major corporations were publicly engaging in “woke” corporatism in an effort to appeal to the far-left crowd and avoid the wrath of the cancel culture community. It is possible this bold stand against Russian aggression is nothing more than a ploy to protect their bottom line.

Of course, it is also possible these entities are engaging in an authentic form of compassionate corporatism, using their influence to prevent the destruction of a smaller nation at the hands of an aggressor. Perhaps they wish to join the rest of the international community in pressuring Putin to back off.

It is worth considering that both motivations could be true at the same time. It is not out of the realm of possibility that these corporations are expressing genuine outrage at the actions of the Kremlin while also realizing that taking a public stand will endear them to customers in the long run. Either way, these decisions to publicly rebuke Moscow’s actions send a strong message to the Russian regime and the rest of the world. The question remains: Is Putin listening?

~ Read more from Jeff Charles.