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Amid the Russian invasion of Ukraine, businesses are forced to choose whether to withdraw from Russia or to continue operating in the country. For some, like Meta, the decision was made for them.
On Friday, Russia officially banned Instagram after also banning Facebook and Twitter. As reported by Reuters, the decision came after Meta said it would not censor users in some countries calling “for violence against Russians and Russian soldiers in the context of the Ukraine invasion.” Meta President of Global Affairs Nick Clegg said it was about protecting “people’s rights to speech as an expression of self-defense” in response to the invasion. For now, Meta’s other messaging platform, WhatsApp, remains in service in the country.
In a tweet, Instagram head Adam Mosseri called the app’s ban “wrong,” noting that of the 80 million Instagram users in Russia, 80% follow at least one account from outside of the country. In addition to cutting Russian citizens off from information resources, some fear the Instagram ban could also impact people’s livelihoods—particularly local business owners who rely on the app.
Not so fast: While some companies are fighting to stay in service in Russia, others are trying to get out. So far, more than 300 companies have “withdrawn” from the country in some capacity, according to research from the Yale Chief Executive Leadership Institute. Now, Russian prosecutors are threatening to sue or seize assets from companies that have left or plan to leave, including Coca-Cola, McDonald’s, and Procter & Gamble, according to the Wall Street Journal. The prosecutors also threatened to arrest corporate leaders critical of the Russian government.
Zoom out: As Russia and corporate executives determine if—and to what extent—companies will continue to operate in the country, Russian citizens are bearing the brunt of the decisions:
- In addition to social media access, Apple Pay and Google Pay services were also restricted, causing issues for some in Moscow’s Metro system, as a result of sanctions.
- Big Macs are selling for $36 online after McDonald’s shut its doors, while consumer prices in the country continue to rise.
- And the ruble has lost one-third of its value since the invasion, creating additional financial strain.—KH