Koch Industries reverses course and says it will stop doing business in Russia

After more than a month of defying public pressure by continuing to do business in Russia despite its invasion of Russia UkraineKoch Industries now says it is designing an escape route.

Koch President Dave Robertson told employees in a note that Guardian Glass, a subsidiary of the Wichita, Kansas industrial conglomerate, is working with local executives in Russia “to find an exit strategy” that also ensures safety of its employees.

“The sanctions announced in early April, combined with the Russian government’s response and other actions, have made conditions unsustainable for the Guardian to continue its operations in Russia,” said Robertson, who is also director of operations for Russia. Koch, on the note, who got it for the first time. by Popular Information.

Guardian, one of the world’s largest glassmakers, has about 600 workers in two factories in the Russian cities of Ryazan and Rostov. Earlier this month, the Guardian called on its Russian workers to shut down the plants, prompting Russian authorities to repeat warnings that such moves could lead to their prosecution and imprisonment, Robertson said.

In addition to seeking to protect workers, Koch wants to prevent Russia from seizing the plants and “benefiting economically” from the facilities, the note also says.

Koch, the second-largest private company in the United States with annual revenues of $ 115 billion, had received criticism for continuing to operate and sell products in Russia despite the nation’s assault on Ukrainian cities.

“All of Koch’s other companies, none with operating assets in Russia, have ended or are ending their business there,” Robertson said.

More than 750 companies have said they are voluntarily reducing operations in Russia to a certain extent beyond the minimum required by international sanctions, while others remain unscathed, according to a count compiled by Yale University professor Jeffrey Sonnenfeld and his research team.

According to Popular Information, a left-wing bulletin led by Judd Legum, political groups backed by Charles Koch, the right-wing billionaire who is president and CEO of Koch Industries, have opposed widespread economic sanctions against Russia.