Coal sanctions: Europe is finally coming after Russia’s energy

Coal sanctions: Europe is finally coming after Russia’s energy

On Tuesday, the European Commission proposed a ban on €4 billion ($4.3 billion) really worth of Russian coal imports per 12 months as part of a fifth package of sanctions designed to further diminish Russian President Vladimir Putin’s war upper body. Other proposals target Russian know-how and manufacturing imports, truly worth a further €10 billion ($10.9 billion).

Europe has imposed punishing sanctions on Russia’s economic system given that Putin’s tanks rolled into Ukraine in late February, but stopped limited of focusing on Russia’s energy sector — right up until now. Pictures of unarmed civilians, bound and shot, lying along Bucha’s roadways — which ended up until finally a short while ago beneath Russian occupation — have certain leaders to alter tack.

Russia’s oil and gasoline could be next. European Fee President Ursula Von der Leyen informed EU lawmakers on Wednesday that the fifth round of sanctions “will not be [the] previous”.

“Indeed, we have now banned coal, but now we have to glance into oil,” she said.

Charles Michel, who chairs conferences of EU leaders, reported in a tweet that “measures on oil, and even gasoline will also be desired quicker or later.”

Much more details of the new package, which include the timeline for the ban on coal, could appear on Wednesday when EU ambassadors meet up with for talks. The measures continue to want the approval of all 27 member states.

Sanctioning coal will bite some European nations, but it’s among the least complicated power resources to wean off — a great deal of the globe is by now doing just that. The trickier question is: What happens subsequent?

How much Russian coal goes to Europe?

Russia was the world’s 3rd-greatest exporter of coal in 2020, behind Australia and Indonesia, in accordance to the International Vitality Agency, with Europe by considerably its largest customer.

The continent received 57 million tons of Russian difficult coal that calendar year, when compared to 31 million tons for China, IEA knowledge reveals. This amounted to extra than fifty percent of Europe’s coal that 12 months, according to Eurostat.

But the EU was by now turning absent from the world’s dirtiest fossil gasoline.

The sum of electrical energy produced by coal has lessened steadily throughout the block in current many years, falling 29{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} in between 2017 and 2019, in accordance to analysis by power consider tank Ember.

Europe proposes ban on Russian coal imports

And in spite of a transient uptick final 12 months as gasoline price ranges hit history highs, the IEA anticipates that European desire for coal will resume its continuous decline. Whole imports had been predicted to fall 6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} by 2024 even right before Russia’s invasion of Ukraine.

Other nations could action in to purchase Russian coal. The IEA expects India’s coal imports to rise 4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} in 2024, and a lot more than 6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} in Southeast Asia. Russia has presently benefited from a jump in exports to China subsequent Xi Jinping’s block on Australian imports, the company claimed in a December report.

What will a EU ban necessarily mean for coal prices?

Even now, a source crunch — even just one that is phased in — could induce a headache for nations around the world that still use coal for much of their electricity technology, like Poland and Germany.

A fall in offer coupled with rebounding need in China assisted thrust worldwide coal costs up to all-time highs in Oct 2021 — right before slipping again down, for every IEA analysis.

But elevated costs could prove stickier under an EU ban on Russian imports. Rotterdam coal futures, the benchmark for European coal costs, closed at $257 a ton on Monday, but was last found trading at $295, details from the Unbiased Commodity Intelligence Providers showed.

Matthew Jones, direct analyst for EU electrical power and carbon at ICIS, explained to CNN Business that the coal ban will “make an presently tight European supply scenario even tighter and will guide to a scramble to obtain alternate coal resources.”

“Entrance month Rotterdam coal futures traded on the ICE exchange were up almost 15{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, and entrance calendar year by 13{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, because yesterday’s near in response to the information,” Jones added.

Even so, Henning Gloystein, director of strength, local climate and resources at Eurasia Group, thinks EU states can face up to the shock. The think tank also mentioned on Tuesday that any EU obtain of Australian coal would cushion the blow.

“Sanctioning coal will also make everyday living a great deal a lot more tough for European utilities, which consume a large amount of Russian coal, but electrical power providers can cope with this” Gloystein explained to CNN Business.

What is actually still left to sanction?

Russia’s oil and gasoline materials are notably absent from the hottest round of sanctions. The bloc imported 26{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of its crude and 46{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of its gasoline from Russia in 2020, according to Eurostat.

But blocking oil imports is on the desk: European Fee President Ursula von der Leyen said in a statement Tuesday that the bloc was “working on added sanctions, which include on oil imports.”

Previously, the United States has tapped its strategic oil reserves, releasing 180 million barrels into the world-wide industry, to aid convey down gasoline charges and counter the reduction in Russian oil materials. The IEA also agreed to launch further oil from its member nations at an emergency meeting previous week.
All-natural gas is nevertheless the most unlikely concentrate on of sanctions, partly since of distinctions among member states that are intensely reliant on Russian vitality and individuals seeking to transfer quicker to strike at the heart of the Russian financial state.
EU leaders have pledged to cut down use of Russian gasoline by 66{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} just before the close of this year, and to crack the bloc’s dependence on Russian electricity by 2027.

A person state has gone even further. Lithuania’s Primary Minister Ingrida Šimonytė mentioned in a tweet Sunday that “from now and so on, Lithuania will not likely be consuming a cubic cm of harmful Russian gas.” Getting import-reliant nations like Germany and Hungary on board will demonstrate more difficult.

But, in accordance to Gloystein, the bloc’s reluctance to sanction oil and gas is about much more than averting self-harm.

“The EU is keen to be able to continue to keep escalating its response in accordance to developments in Ukraine,” he mentioned. “If Brussels now enforces greatest sanctions, how does it respond to a even more escalation by Moscow?”

Gloystein also explained that targeting Russian oil and gasoline pitfalls backfiring.

“There are really serious and credible concerns that such actions would set off a major escalation by Russia as Putin may sense compelled to act considerably and swiftly in the awareness that his war upper body could before long run dry.”

Mark Thompson contributed to this report.

Colorado steel plant owner potentially supplying Russia’s military draws criticism

Colorado steel plant owner potentially supplying Russia’s military draws criticism

But in the wake of the invasion of Ukraine, the steelworkers and their city are grappling with an unpleasant reality that is no longer easy to ignore: The mill is owned by a company that has been accused of potentially supplying steel to build Russian tanks and whose largest stakeholder is a close ally of Russian President Vladimir Putin.

Evraz’s North American subsidiary and its employees say the steel produced in the US is not going to Russia. The North American operation doesn’t send money to the parent company, and its profits are reinvested in its US and Canadian operations, according to executives.

But in recent years, the parent company’s operations have resulted in billions of dollars in dividends that have largely gone to Abramovich and a handful of other Russian oligarchs. Advocates for Ukraine say they’re distressed that the US hasn’t followed its allies in sanctioning Abramovich, and that a figure with close ties to Putin still holds the largest stake in the company that owns the Pueblo mill. 

“There is no clean money among the oligarchs,” said Marina Dubrova, the founder of Ukrainians of Colorado, a non-profit organization that has raised funds to send medical supplies to Ukraine. Even if he were to own a “half percent, even one-tenth of a percent” in the company, she argued, “Abramovich has to be sanctioned and his portion has to go to the highest bidder.”

Marina Dubrova, founder of Ukrainians of Colorado, pictured in a Denver office on March 28.

So far, executives and local employees at the Pueblo plant say there has been no impact on their day-to-day job. But some workers are worried about whether that could change if more sanctions go into effect. 

“Just the uncertainty is scary, it’s real scary,” said Rique Lucero, a metallurgical technician who has worked at the plant for 14 years. “We wonder how the war is going to further affect us.”

The Evraz situation is an example of how Russian investment in the West could be complicating sanctions: The company employs more than 1,600 people in the US, and the need to avoid job losses could make officials more cautious about sanctioning Abramovich, sanctions experts said. 

And the company also shows that the Russian elite’s money in the US goes deeper than stereotypical luxury items — even reaching a historic icon of American industry. 

Most people think Russian “oligarchs have been putting their money primarily into these mega-mansions, these superyachts, high-end artwork, Ferraris, Maseratis,” said Casey Michel, the author of a book on foreign investment in the US. But in addition to those flashy status symbols, he said, “there are so many other significant industries that are wide-open for all this oligarchic money.”

A plant that ‘built the American West’

A worker mans the control room at the Evraz steel mill in Pueblo.

Every hour, tons of recycled scrap metal are dropped into the Pueblo mill’s massive furnace, with a deafening boom and an eruption of golden sparks. The metal is heated at about 3000 degrees Fahrenheit into white-hot, molten steel, then cooled and carefully rolled into rail, wire rod, rebar or pipe.

That transformation has been taking place here, in one form or another, since the mill was founded in 1881 as the first steel plant west of the Mississippi River. 

Owned by the Colorado Fuel and Iron Company, which grew into Colorado’s largest private employer, the mill attracted workers from around the world. At one point, 40 languages were spoken at the mill and its mines. It pumped out rail that stretched around the region, speeding migration across the sparsely settled Western US. 

“This steel really built the American West,” said Nick Gradisar, Pueblo’s mayor, whose father and grandfather worked at the mill, and who worked there himself several summers during college. “It used to be that the fortunes of Pueblo rose and fell on the economics of the steel industry.”

The city experienced the downside of that relationship when the price of steel crashed in the 1980s. Thousands of workers at the plant lost their jobs over several years, local leaders say. 

Historical photos of a mining operation are displayed at the Evraz offices in Pueblo.

After the downturn, the mill went through bankruptcy and was bought by an Oregon-based company. Evraz bought the parent company in 2007 for $2.3 billion, in what was at the time the largest ever Russian investment in the US.

According to the company’s 2021 annual report, five percent of Evraz employees are in North America and about 16{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of its revenue comes from its North American steel operation. Most of its other mills are in Russia and Kazakhstan.  
As of February, Abramovich, a globe-trotting owner of the Chelsea soccer team who holds citizenship in at least two other countries, owned the largest stake in Evraz, at roughly 29{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, according to the company. But the UK sanctions office argued that he effectively controls the company, which is publicly traded, along with his associates: Four other Russian oligarchs control another 38{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of the company. 

Evraz has been a lucrative investment for Abramovich and other oligarchs. In 2021, according to its annual report, almost half of Evraz’s profit went to paying out more than $1.5 billion in dividends to its shareholders — two-thirds of which went to the five largest Russian shareholders. Evraz’s financial performance in 2021 “made it possible to pay” such generous dividends, the company wrote in the annual report, citing numbers that included a big increase in earnings in its North American operations.

Russian businessman Roman Abramovich attends talks between delegations from Russia and Ukraine in Istanbul on March 29, 2022.
Abramovich also has myriad investments in the US hidden through complicated networks of shell corporations and hedge funds, The New York Times reported last month. But his shares in Evraz are in his own name, as are two mansions he owns in Colorado ski towns. A spokesperson for Abramovich declined to comment about Evraz.

While the Pueblo mill now has far fewer employees than at its peak, it still puts out about half of all rail used in North America. And while it’s no longer the biggest employer in the city, it’s still the source of some of the best-paying blue-collar jobs in the region, local leaders say.

“Just about everyone that’s a resident of Pueblo has had family that’s worked out there,” some going back four generations or more, said Jeff Shaw, president of the Pueblo Economic Development Corporation.

How Russia’s war could affect Colorado steel

An employee performs safety checks before steel is tapped at the Evraz mill in Pueblo.

Most people in Pueblo don’t really think of the mill as Russian-owned, according to interviews with city leaders and local residents. Instead of referring to it as Evraz, locals still call it CF&I — Colorado Fuel and Iron — or just “The Mill.” 

But the new ownership became impossible to ignore over the last few weeks, when Russia launched its invasion of Ukraine.

Chuck Perko, the president of one of the two United Steelworkers unions that represent workers at the plant, said he got “dozens of phone calls” about the potential impact in the days after the invasion and after the UK and EU governments announced sanctions against Abramovich. 

“Retirees are worried, will the company continue to exist, will their pensions stay solvent?” he said. “Families want to know, is my husband or wife going to have a job tomorrow?” 

In the weeks since, however, Perko said he hasn’t seen any real impact on the Pueblo mill’s operations. “I’m worried more about the people in Ukraine than I am about my people being affected by it,” Perko added.

Chuck Perko, president of United Steelworkers Local 3267 poses on March 28, 2022 at his union hall.

Evraz says it’s business as usual in Pueblo. David Ferryman, the Evraz North America senior vice president who runs the Pueblo plant, said watching the war in Ukraine was “heartbreaking,” but argued that critics of Evraz were painting any connection to Russia with “a broad brush.”

“We have our own CEO, we have our own board of directors … we’re about as American a company as it gets,” said Ferryman, sitting in a room in the company’s Pueblo office with walls covered in historic photos of the plant. “Those earnings stay here in North America, and they’re invested into these facilities.”

The US government has not publicly explained why it hasn’t targeted Abramovich with sanctions like the UK, EU and Canada. But Ukrainian President Volodymyr Zelensky asked President Biden in early March not to sanction Abramovich, who has acted as an unofficial go-between for Moscow and Kyiv, in order to allow him to play a role in the peace process, according to two sources with direct knowledge. The Wall Street Journal first reported Zelensky’s request.

It’s unclear how active or central Abramovich has been in the negotiations since then. A Kremlin spokesperson confirmed that Abramovich was involved in peace talks, and he was present at a meeting between the two sides in Istanbul last week.

Treasury Department officials were examining sanctions on Abramovich that would exempt Evraz’s US plants as part of a wide-ranging effort to limit economic fallout of new sanctions, the sources said. A Treasury spokesperson declined to comment about the potential of US sanctions on Abramovich, saying the department doesn’t preview sanctions.

David Ferryman, senior vice president at Evraz North America, is pictured in front of the Pueblo steel mill.

According to sanctions experts, if the US does sanction Abramovich, the Treasury Department would likely issue a license allowing the Pueblo and Portland steel mills to continue operating in order to avoid any impact on American employees. 

“If 1,000 Americans are going to lose their jobs, that could impact their decisions,” said Charlie Steele, a former Treasury Department and Department of Justice official who worked on sanctions policy. 

Even without US sanctions, the UK, EU and Canadian actions appear to have complicated Evraz’s financial picture, between its stock being suspended from the London exchange and the near-miss in its bond payment. And the broader impact of sanctions can be unpredictable, especially if financial institutions decide they want to avoid the potential stigma of working with companies linked to Russia, experts said. 

Even if banks are allowed to work with the company, Steele said, “they might say, I’m not going to get within 100 miles of that.”

Russian investment in America’s industrial heartland

Cranes tower over a construction site for a new steel mill that will produce longer segments of rail.
While many major US businesses have expanded in Russia over the last two decades — and are now cutting ties — Evraz is a rare example of investment flowing in the opposite direction. 
There are a handful of other US steel plants in the country with ties to Russian oligarchs. NLMK, one of Russia’s largest steel companies, owns plants in Pennsylvania and Indiana. And Severstal, another major Russian steel producer, bought several plants around the US, including in Mississippi and Michigan, before selling them in 2014 as tensions escalated over the invasion of Crimea. 
Meanwhile, other proposals for Russian investment in US manufacturing have fallen through over the last decade, in some cases because of past sanctions — including plans for factories in Louisiana and North Carolina.
Most notably, in 2019, Russian aluminum company Rusal announced with great fanfare a $200 million investment to build an aluminum factory in eastern Kentucky, promising hundreds of new jobs in the economically struggling region. The investment came just months after the Trump administration lifted sanctions on Rusal — which had previously been run by oligarch and Putin ally Oleg Deripaska — amid an extensive lobbying campaign by the company. 
Buttons are illuminated on a panel in a control room at the Pueblo steel mill on March 29.
But the Kentucky factory plan fell apart in recent years as Rusal backed out, leaving an empty greenfield and angry state legislators trying to claw back a $15 million taxpayer investment in the project.
By all accounts, Evraz has done the opposite. Workers say that their new owners have been far easier to work with than the previous, Oregon-based management, whose contentious relations with unions led to years of strikes and labor disputes. And they’re thrilled with the new investments Evraz is making in Pueblo, which have led to a bevy of construction cranes stretching up into the sky around the plant.

“Locally, Evraz has been a great partner,” said Jerry Pacheco, the executive director of the Pueblo Urban Renewal Authority, which has helped fund the expansion.

The company is in the middle of building a new $700 million steel mill that will produce much longer segments of rail, helping them compete for contracts to build high-speed rail lines and other rail projects. The project is set to receive at least $84 million in public incentives from the city and state governments and the urban renewal authority, and potentially up to $118 million — with certain requirements including retaining jobs and paying higher property taxes in the future.

Evraz has invested more money into the Pueblo expansion in recent years than any capital project at its facilities around the world, according to the company’s annual reports.

Steel is cast at the Evraz mill in Pueblo on March 29.

 Evraz also just finished a solar power project that makes it the first steel plant in the world to be powered almost exclusively with solar power — putting it on the cutting edge of green manufacturing. A sprawling field of solar panels now lies just beyond the historic mill buildings, swiveling to face the sun and stockpile the energy needed for the mill. 

The public incentives were crucial in keeping Evraz in Pueblo: The company had been exploring the possibility of moving its operation to another state before city leaders agreed to kick in the funding, and Gradisar argued that the taxpayer money was well worth it. “Good jobs for blue-collar workers, those are hard to come by in this day and age,” he said. 

Moral dilemmas at an ‘All-American’ mill 

Pueblo Mayor Nick Gradisar says the Russian connection to the Evraz mill is not a big concern for him.
Like many communities across the US, Pueblo is stepping up to help Ukraine. The county sheriff donated unused body armor to the Ukrainian military. A boy scout troop held a fundraiser for Ukrainian scouts at the local Pizza Ranch. A new mural painted on the levee of the Arkansas River, which runs through the city, displays the colors of the Ukrainian flag and a sunflower, the country’s national flower.

But there’s little public consternation or debate about Pueblo’s close ties with a company accused of potentially supplying Russia’s war effort. 

“It’s not a big concern for me right now,” Gradisar, the mayor, said of the Russian connection to the mill. He said he wanted to see stability at the plant: “Those are tough operations to operate and run, and you need to know what you’re doing.” 

“I’ve had people suggest to me we should seize the mill, whatever that means,” Gradisar added. “I didn’t even respond to that.”

Cars drive through downtown Pueblo on March 29.

Other Pueblans agree that they’re not bothered by the Russian ownership. As she waited for a lunch table at Estela’s Mill Stop Cafe, a popular Mexican joint around the corner from the Evraz offices, Carol Trujillo said she never thought of the company as Russian-owned before the latest string of headlines.

“To us, it’s All-American,” she said of the mill, listing her relatives who had worked there over the years: uncles, aunts, a brother, her grandmother. “I don’t think the ownership matters to what the people do here.”

Some officials in Canada have called on Evraz to divest from its steel mills there, to avoid any connection with the invasion of Ukraine. “That is actually the way out of this in terms of the balance between needing to support Ukraine and accepting those sanctions and protecting the employment and the … livelihood of those workers,” Sandra Masters, the mayor of Regina, Saskatchewan, which is home to a major Evraz plant, said last month.

Perko, the union president, and several other steelworkers said they would be happy to see Abramovich’s shares sold off, or the mill return to American ownership.  

“We’re fairly independent to the point that if something were to really happen, we could be ripped away from the parent company and run independently,” Perko said. 

Daniel Duran, an accounting clerk with Evraz, admits he has felt a moral dilemma for working for a company with Russian ties.

Some steelworkers said they’ve been feeling the moral dilemma of working for a company with ties to Russia. Daniel Duran, an accounting clerk who has been at the mill for five years after a string of nonunion, low-paying jobs in construction and at Walmart, said he loves working at Evraz, and credits the job for letting him give his four children a good life in Pueblo.

“Honestly, this job has afforded me everything I have today,” Duran said. “I have always thought of this place as being American hands forging US steel.” 

But when he’s turned on the news to see Ukrainian families fleeing Russian tanks, he said he’s found himself getting emotional. “I have my own kids, so it makes it tough to sit there and see all this stuff going on and try turning a blind eye,” he said. 

Sitting in his empty union hall, a 100-year-old Mission Revival-style building with long cracks running up the walls, Perko said that watching the videos from Ukraine reminded him of his own family history: his grandmother fled the Soviet army as a refugee from Yugoslavia during World War II.

“I disdain what’s going on over there,” Perko said of Ukraine. “But my company is not Abramovich’s company in my eyes — and so it helps me sleep at night to know that we’ve got so much separation from the larger picture.” 

The exterior of the steel mill in Pueblo.

CNN’s Drew Griffin, Scott Bronstein and Phil Mattingly contributed to this report.

These companies have the most to lose from Russia’s attack on Ukraine

These companies have the most to lose from Russia’s attack on Ukraine


New York
CNN Business
—  

International companies that hold a major presence in Russia are bracing for more sanctions from Western countries.

Russia has already paid a price for its aggression: the country’s stock markets and currency have tanked this week after President Vladimir Putin ordered troops into Ukraine.

Sanctions from the United States and European nations intensified Thursday as Western nations’ leaders condemned Russia’s actions.

Putin warned Russian business leaders on Thursday that he expected further “restrictions” on the economy, but called for business to work “in solidarity” with the government.

Here are some companies with a significant presence in Russia:

BASF

The German chemicals maker BASF

(BASFY)
co-owns Wintershall Dea, one of the financial backers of the suspended Nord Stream 2 gas pipeline, with Russian billionaire Mikhail Fridman’s LetterOne investor group. It says it generates 1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of group sales from Russia.

BP

British oil company BP

(BP)
is the largest foreign investor in Russia with a 19.75{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} stake in the country’s national oil company Rosneft. It also holds stakes in several other oil and gas projects in Russia.

Coca-Cola HBC

The London-listed company bottles Coke for Russia, Ukraine and much of Central, Eastern Europe. It counts Russia among its largest markets and employs 7,000 people there.

Danone

The French yogurt maker Danone controls Russian dairy brand Prostokvanhino and gets 6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of total sales from the country.

Engie

The French gas utility company is one of five co-financiers of Gazprom’s Nord Stream 2.

Metro

The German retailer employs about 10,000 people in Russia where it serves some 2.5 million customers.

Nestle

The Swiss consumer goods company had six factories in Russia as of 2020, including plants making confectionery and drinks, according to its website. Its 2020 sales from Russia were worth about $1.7 billion.

Renault

The French carmaker has a 69{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} stake in Russian joint venture Avtovaz, which is behind the Lada car brand and sells more than 90{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of its car production locally.

Rolls-Royce

The aeroengine maker says Russia contributes less than 2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of total revenue, but 20{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of its titanium, which is used to make engine parts and landing gear for long-haul jetliners, is from the country.

Safran

Russia’s VSMPO-AVISMA is the French jet engine maker’s largest single supplier of titanium though the French company says Russia supplies less than half its requirements.

Shell

The Dutch oil company owns 27.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of the Sakhali-2 liquefied natural gas project, which has an annual capacity of 10.9 million tonnes and is operated by Gazprom. It’s also one of the five co-financiers of Nord Stream 2.

TotalEnergies

The French oil company is one of the biggest investors in Russia with a 19.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} stake in Russia’s Novatek, a 20{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} interest in the Yamal LNG joint venture, 21.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of Arctic LNG 2, a 20{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} stake in the onshore Kharyaga oil field and various holdings in the country’s renewables, refining and chemicals sectors, according to its website.

Uniper

The German utility has a $1 billion exposure to Nord Stream 2, along with five power plants in Russia with a combined capacity of 11.2 gigawatts, providing about 5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of Russia’s total energy needs. It also imports Russian natural gas to Europe.

ExxonMobil

The American oil giant has more than 1,000 employees in Russia, and has been in the country for over 25 years.

Its subsidiary, Exxon Neftegas Limited (ENL), has a 30{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} stake in Sakhalin-1 — a vast oil and natural gas project located off Sakhalin Island in the Russian Far East. It has operated the project since 1995 on behalf of a consortium that includes Japanese and Indian partners, as well as two affiliates of Russia’s largest oil company, Rosneft.

McDonald’s

The burger chain has categorized Russia as a high-growth market and continued to open locations there throughout the last decade.

Mondelez

The Oreo maker and owner of Cadbury became the leading chocolate maker in Russia in 2018.

Japan Tobacco

The company employs about 4,000 people at its Russian plants, and its tax payments in 2020 accounted for 1.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of the Russian Federation state budget, the company said on its website. The former tobacco monopoly relies on the Commonwealth of Independent States, including Russia and Belarus, for about a fifth of its profits.

Marubeni

The Japanese trading house has four offices in Russia, where it sells tires for mining equipment and manages a health checkup center.

Mitsubishi

The company distributes Mitsubishi Motor vehicles through some 141 dealerships in Russia and has a stake in Sakhalin II gas and oil development project that supplies Japan with liquefied natural gas and trades coal, aluminium, nickel, coal, methanol, plastics and other material. It also supplies power plant equipment and other machinery to Russia.

SBI Holdings

SBI Bank, established almost three decades ago, offers corporate services and loans to Japanese companies expanding operations in Russia.

Toyota

The company’s plant in Saint Petersburg, Russia, makes Camry and Rav4 vehicles, and it has a sales office in Moscow. It has about 2,600 staff, including 26 Japanese nationals, at those locations.

– CNN Business’ Mark Thompson and Reuters contributed to this report.