The COVID-19 pandemic has been tough on automotive manufacturers around the globe as a result of the ongoing semiconductor chip shortage. However, now, Ford has potentially forfeited even greater profit as the American motor company suspended Russian operations amid Russia’s invasion of Ukraine.
As per Reuters, Ford Motor Co informed their joint venture partner Sollers of its decision on Tuesday. The company said the discontinuance of Russian operations will endure until further notice.
Ford also stated that the company does not boast significant operations in Ukraine, where the international fight ensues.
Additionally, in an attempt to aid the half-a-million refugees fleeing Ukraine, Ford plans to share a significant donation with the Global Giving Ukraine Relief Fund. According to the outlet, the charitable fund is intended for humanitarian use, directed toward Ukrainian citizens and families.
Russian Economy Under Major Strain Amid Invasion
Manufacturers including Ford, Apple, and General Motors have halted operations in Russia. And now, major credit card companies are doing the same thing.
Major financial service corporations Mastercard and Visa reportedly blocked Russian banks from using their networks on Tuesday. In addressing their decision, Mastercard’s CEO Michael Miebach empathized with the Ukrainian people, speaking to the devastation resulting from the Russian military.
“As a result of sanction orders,” Miebach said, “we have blocked multiple financial institutions from the Mastercard payment network.
The CEO additionally detailed the company’s humanitarian efforts amid the invasion, contributing $2 million to global aid programs including the Red Cross and Save the Children. He added, “We will actively pursue additional opportunities to assist fund for humanitarian relief.”
Visa Cuts Ties with Russia
Simultaneously, Visa announced its own humanitarian aid efforts.
“Visa foundation will provide a $2 million grant to the U.S. Fund for UNICEF to support humanitarian aid to the people of Ukraine. We are proud to support the courageous work of UNICEF and their humanitarian relief efforts.”
Additionally, the company plans to “double match” all company employee donations up to $1 million.
The company further announced its plans to comply with ongoing sanctions.
“Our thoughts are with the Ukrainian people and all those impacted,” Visa concluded. “We hope for a peaceful resolution soon.”
In addition to Mastercard and Visa, other prominent companies cutting their ties with Russia include Shell, FedEx, and UPS. The latter two also suspended specified services in Ukraine for the better protection of their employees.