Western sanctions are forcing the world’s CEOs to grapple with the new reality of operating in a world where working with Russia is off the table
German chancellor Olaf Scholz speaks at the World Economic Forum in Davos, Switzerland. | Markus Schreiber/AP PhotoDAVOS, Switzerland — For the second year in a row, Western sanctions have prevented Russian officials and oligarchs from attending the World Economic Forum in Davos, the Swiss ski-resort town that hosts the annual confab of the ultra-rich.
In the old days, the world’s top business executives sipped vodka over ice at the Russia House, the country’s unofficial embassy at the forum, and rushed to strike deals with the Russian oligarchs and financial leaders — from energy tycoons to pharmaceutical giants. “Right now, there are still questions about whether there are any good long-term replacements for Russian oil and gas,” said one Western official in Davos who was granted anonymity to discuss private conversations.
“The sanctions didn’t have the kind of immediate impact that people in the West thought that they might have,” said Angela Stent, a fellow at the Brookings Institution think tank in Washington. That’s raised fears among Moscow’s former business partners here that the international business order is changing — perhaps for the long haul. With sanctions in place and unable to be rolled back easily, those companies are set to lose out on potential lucrative opportunities — at least in the short term. That doesn’t matter for some companies that see divesting from Russia as a moral imperative. Others, though, are scrambling to rethink their global business strategies.
Still, sanctions are weakening Russia as a global power. Major Western companies, including Starbucks, Coca-Cola and McDonald’s, have pulled their businesses from the country. Others have shut down work with non-sanctioned entities in fear of future sanctions. Behind the scenes in Davos, executives say they’ve all but written off Moscow. As Russia continues toand target civilians in Ukraine, revisiting those decisions looks increasingly unpalatable.
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