Russia blocks Facebook and passes ‘Fake News’ law; LVMH, Microsoft halts sales

(Reuters) – Russia said it would block Facebook due to state media exclusion, and CNN said it would stop broadcasting in Russia after a new law punishing “fake news” raised the stakes in Moscow’s battle with foreign companies.

Friday marked an escalation in the conflict that began after the invasion of Ukraine. Russia blocked a wave of media companies and new big names announced that they would close sales of Russia, including Microsoft (MSFT.O) and video game maker Electronic Arts Inc (EA.O). Read more

Russia said that Meta Platforms Inc (FB.O) Facebook has been blocked for restricting state-backed channels, as has the BBC, Deutsche Welle and Voice of America websites for what it described as false information about the war in Ukraine. Read more Twitter (TWTR.N) Russian media said it would also be banned.

The BBC said it would temporarily suspend its work in Russia after a new law was passed that could imprison anyone found to have intentionally spread “false” news. Read more

AT&T (Tennessee) A CNN spokesperson said the broadcast was halted “to assess the situation and our next steps moving forward.”

Nick Clegg, Meta’s head of global affairs, said the company will continue to do everything in its power to restore its services.

“Millions of ordinary Russians will soon find themselves cut off from reliable information, deprived of their daily ways of communicating with family and friends, and silenced from speaking out,” he said in a statement posted on Twitter.

Many Russians have downloaded VPN software to avoid state restrictions, but Internet provider Cogent (CCOI.O), which said it is the second-largest airline outside Russia, has revealed plans to cut service, in part to avoid its use in cyberattacks. Read more

A large number of major Western brands in a wide range of industries came out of Russia. Some of Russia’s most famous personalities have rebuked Moscow for its attack on Ukraine. Others described the reaction to the circumstances, including luxury goods maker LVMH (LVMH.PA) which said on Friday it would temporarily close 124 stores in Russia. Read more

Canadian tires (CTCa.TO) It also announced that it would temporarily close 41 Russian stores of the outerwear and luggage group Helly Hansen, and private jet maker Bombardier Inc said it had suspended all activities with Russian customers, in accordance with international laws. Read more

Shipping and supply chain issues have also made it difficult to work in Russia. Companies from Royal Dutch Shell to Apple Inc (AAPL.O) For Toyota Motor Corp (7203.T) They took action from shutting down sales and operations to exiting completely. Agricultural commodities trader Louis-Dreyfus announced the suspension of its operations in Russia on Friday.

There are no easy answers

Russian First Deputy Prime Minister Andrei Belousov laid out options for foreign companies on Friday: stay in the country, exit completely or hand over their property to local managers until their return.

No road comes without risks. Those residents may face a backlash in Western markets as the public has rallied to the Ukraine issue, those who transfer the shares may hand over the keys with little collateral, while those who leave the shares may face a big loss at best, or may have to sell at a price symbolic. sum.

“It’s a complex process,” said Darren Woods, CEO of US energy company ExxonMobil Corp. (XOM.N)which emerges from oil and gas investments involving partnerships with Russia’s Rosneft (ROSN.MM) and another $4 billion. Read more

The companies had little time to prepare.

The Russian invasion – which Moscow calls a “special operation” – has prompted the United States and Europe to impose swift and sweeping sanctions, affecting everything from global payment systems to a range of high-tech products. Read more

“Western companies may not have lost so much money so quickly due to geopolitics since the overthrow of the Shah in Iran,” said Charlie Robertson, chief economist at Renaissance Capital, referring to the Islamic revolution more than four decades ago that displaced Western business.

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However, some companies plan to continue. Italian tire manufacturer Pirelli (PIRC.MI) It said it had set up a “crisis committee” to monitor developments, but it did not expect to halt production at any of its two plants in Russia.

As for companies packing, Russia’s first deputy prime minister said the fast-track bankruptcy plan “will support the employment and social well-being of citizens so that honest entrepreneurs can ensure the efficient functioning of the business.”

So far, global companies, banks and investors have announced more than $110 billion in exposure to Russia in some form. This amount can go up. Read more

BASF SE (BASFn.DE)The world’s largest chemical group said it had halted new business in Russia and Belarus, except for food production, for humanitarian reasons. It also hinted at a minefield of new rules introduced by sanctions.

“BASF will only conduct business in Russia and Belarus that meets existing obligations in accordance with applicable laws and regulations and international rules,” she said.

Swiss food giant Nestle SA (NESN.S)Swiss watchmaker Swatch Group said it will continue its operations in Russia but will suspend exports.

German Bank (DBKGn.DE) She said she was experiencing stress operations due to her high tech hub in Russia, but she emphasized that she could run her day-to-day business globally.

The German bank opened a new office in Moscow in December, a move it said at the time represented “a significant investment and commitment to the Russian market”.

Additional reporting by Sabrina Valli in Houston, Giulio Beuvacari in Milan, Toby Sterling in Amsterdam, Silke Kultrowitz and John Revell in Zurich, Tom Sims and Frank Sebelt in Frankfurt, Kate Holton and Richa Naidoo in London, Diane Bartz in Washington and Elizabeth Culliford in New. York, Lily Forode, Gus Trombez in Paris, Alison Lambert in Montreal, Teyashi Datta, Arunima Kumar and Eva Matthews in Bengaluru; Writing by Edmund Blair and Peter Henderson Editing by Praveen Shar, Nick Ziminsky and Matthew Lewis

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