SocGen, Citi seek to cut Russia exposure, Embraer halts parts supply

March 3 (Reuters) – French bank Societe Generale said it was working to cut its risks in Russia, fearing Moscow’s tit-for-tat response to Western sanctions, while Brazilian planemaker Embraer joined Airbus and Boeing in halting parts supplies to Russian airlines.

Underscoring the challenges global companies are facing as they comply with sanctions against Russia after its invasion of Ukraine, Societe Generale (SOGN.PA) said on Thursday it could see an “extreme scenario”[ads1]; where Russia strips the bank of its local operations. read more

Citigroup Inc (CN) said on Wednesday it could face billions of dollars in losses on its exposure to Russia and was looking to exit Russian assets. Bank shares have taken a drubbing in recent days amid fears of possible writedowns and weaker economies. read more

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Western sanctions, including shutting out some Russian banks from the SWIFT global financial network, have led dozens of global companies to pause operations in the country, hammered the ruble and forced the central bank to jack up interest rates.

Britain said on Thursday it will ban Russian companies from the London insurance market, the world’s largest commercial and specialty insurance center. read more

Fitch and Moody’s on Wednesday cut Russia’s sovereign credit rating by six notches to “junk” status, citing the crippling impact of Western sanctions on the economy. read more

Moscow has responded to the exodus of Western investors by temporarily restricting Russian asset sales by foreigners.

Russian firms, meanwhile, have felt increasingly squeezed.

Sberbank (SBER.MM), Russia’s largest lender, said on Wednesday it was leaving the European market because its subsidiaries faced large cash outflows. read more

Russian forces have yet to overthrow the government in Kyiv but thousands are reported to have died or been injured and more than a million people have fled Ukraine in the week since President Vladimir Putin ordered the biggest attack on a European state since 1945. read more


Russia’s biggest carmaker, Avtovaz (AVAZI_p.MM) – controlled by France’s Renault (RENA.PA) – said it would stop its Togliatti and Izhevsk plants on Saturday and from March 9 to 10 as a shortage of electronic components. read more

Toyota (7203.T) said on Thursday it would halt production at its Russian factory from Friday and indefinitely stop vehicle exports to the country, following similar moves by rivals including Honda Motor (7267.T), Mercedes-Benz (MBGn.DE) and Ford (UN). read more

Supply chains, already disrupted by the pandemic, are facing more stress as airspace closures affect the air freight industry, and airlines responsible for moving around an estimated fifth of the world’s air cargo are affected by sanctions. read more

The world’s biggest shipping lines, MSC and Maersk (MAERSKb.CO) suspended container shipping to and from Russia.

Maersk said on Wednesday that shipments of foodstuffs and medical supplies to Russia risk being damaged or spoiled due to significant delays at ports and customs. read more Inc said on Wednesday it is using its logistics capability to get supplies to those in need and cybersecurity expertise to help governments and companies as part of its support for Ukraine. read more


Japan Airlines (9201.T) and ANA Holdings (9202.T), which normally use Russian airspace for their Europe flights, said they would cancel all flights to and from Europe on Thursday, joining other carriers that have canceled or rerouted flights between Europe and north Asia. read more

Finland’s flag carrier Finnair said it had started negotiations regarding possible furloughs among its flight crew after it had to scrap some of its flights following the closure of the Russian airspace.

Germany’s Lufthansa (LHAG.DE) said it could not provide a detailed outlook for 2022 due to the war in Ukraine and the pandemic.

Embraer (EMBR3.SA) has suspended maintenance services and the sale of parts to Russian customers, following Boeing (BA.N) and Airbus SE (AIR.PA). The European planemaker also said it was analyzing whether its Moscow engineering center could continue providing services to local customers. read more

Corporate condemnation for Russia has come thick and heavy.

US energy firm Exxon Mobil (XOM.N), which will leave Russia as British energy firms BP and Shell (SHEL.L), said: “We deplore Russia’s military action that violates the territorial integrity of Ukraine and endangers its people.”

Swedish fashion group H&M (HMb.ST) which paused sales in Russia, said it was deeply concerned about the tragic developments in Ukraine and did “stand with all the people who are suffering”.

Spotify (SPOT.N) said it has closed its office in Russia indefinitely in response to what it called Moscow’s “unprovoked attack on Ukraine.” read more

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Reporting by Tassilo Hummel in Paris and Jamie Freed in Sydney; Additional reporting by Tim Hepher in Paris, Satoshi Sugiyama in Tokyo, Mehr Bedi in Bengaluru, Megan Davies in New York; Writing by Sayantani Ghosh; Editing by Lincoln Feast, Simon Cameron-Moore and Tomasz Janowski

Our Standards: The Thomson Reuters Trust Principles.

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