Ukraine conflict: Airbus, ExxonMobil and Boeing take action over Russia tieson March 2, 2022 at 10:06 am

Airbus has joined rival planemaker Boeing and oil giant ExxonMobil on a growing list of corporate giants cutting ties with Russia.

The European manufacturer said it had stopped support and supply of spare parts for Russia’s aviation industry.

Earlier, Boeing suspended operations and ExxonMobil said it would end a multi-billion dollar joint venture with Russian state-owned company Rosneft.

Firms are exiting Russia after the West imposed sanctions over Ukraine.

Airbus said on Wednesday: “In line with international sanctions now in place, Airbus has suspended support services to Russian airlines, as well as the supply of spare part to the country.

“Services provided by the Airbus Engineering Centre in Russia (ECAR) have also been suspended pending further review.”

US aviation giant Boeing said it had suspended “major operations” in Moscow and temporarily closed its office in Ukraine’s capital Kyiv.

“We are also suspending parts, maintenance and technical support services for Russian airlines,” a Boeing spokesperson told the BBC.

ExxonMobil is the latest oil producer to cut business ties with the country, after similar moves by BP, Shell and Equinor.

“We deplore Russia’s military action that violates the territorial integrity of Ukraine and endangers its people,” Texas-based ExxonMobil said in a statement.

“We are deeply saddened by the loss of innocent lives and support the strong international response,” it added.

ExxonMobil currently operates and holds a stake in the Sakhalin Island oil and gas fields, alongside Rosneft and companies from Japan and India.

It said it would now exit its Russian oil and gas operations, which have been valued at more than $4bn (£3bn), and halt new investments in the country.

Last year, ExxonMobil employed more than 1,000 people across the country, with offices in Moscow, St. Petersburg, Yekaterinburg and Yuzhno-Sakhalinst, according to its website.

Russia is one of the world’s biggest energy producers.

The announcement came as Brent crude – the international benchmark for oil prices – hit $113 a barrel, marking the highest level seen in more than seven years.

On Monday, rival energy giant BP said it would offload its 19.75% stake in Rosneft after Russia’s “act of aggression in Ukraine”.

On the same day, Shell announced that it would end all of its joint ventures with the Russian energy company Gazprom. This includes quitting the flagship Sakhalin II facility, which is partly owned and operated by Gazprom.

Norwegian oil producer Equinor also said it would start the process of divesting from its joint ventures in Russia.

The announcements comes as brands around the world distance themselves from Russia as its invasion of Ukraine continues.

On Tuesday, Apple also joined the list of major firms to halt product sales in Russia, in the widening corporate backlash over the conflict.

American Express also said on Wednesday that it had halted its relationships with banks in Russia, in line with sanctions.

The payment card company described its business in Russia as “small”, with one partner that issues cards and a handful focused on recruiting merchants.

“We will continue to comply with all relevant laws as the situation evolves,” it said in a statement.