A man takes a selfie picture outside the Russian State Duma building in Moscow on February 22, 2022. – Russian lawmakers on February 22 voted to ratify President Vladimir Putin’s agreements with east Ukraine’s separatist republics, a day after the Russian leader recognised their independence and ordered troops to be sent there. (Photo by Dimitar DILKOFF / AFP) (Photo by DIMITAR DILKOFF/AFP via Getty Images)
Some very large multinational companies with noticeable exposure to Russia could see their sales walloped as the country moves to the brink of war with Ukraine, and the world responds with penalizing sanctions.
That’s according to JPMorgan strategist Dubravko Lakos-Bukas who crunched the numbers. Seven companies standout from a list of 25 names compiled from the strategist as at risk to pressure given at least 4% of their sales come from Russia and Ukraine.
The notables include:
- Sylvamo Corporation (SLVM): 16.6% of sales come from Russia and Ukraine
- Kinross Gold Corporation (KGC): 14% of sales come from Russia and Ukraine
- Arconic Corporation (ARNC): 9.4% of sales come from Russia and Ukraine
- Philip-Morris International (PM): 8% of sales come from Russia and Ukraine
- PepsiCo (PEP): 4.4% of sales come from Russia and Ukraine
- Mohawk Industries (MHK): 4.3% of sales come from Russia and Ukraine
- McDonald’s (MCD): 4.2% of sales come from Russia and Ukraine
The U.S. Presidents Day holiday — along which came closed markets for trading Monday — brought several negative developments on the Ukraine-Russia front.
Russian President Vladimir Putin ordered the deployment of Russian troops to two breakaway regions of Ukraine. The move — seen by the West as a provocation — came after Putin recognized their independence.
U.K. Prime Minister Boris Johnson unveiled a package of sanctions on Russia Tuesday morning. U.S. President Joe Biden will impose new sanctions on trade and financing in the two territories recognized by Putin, CNN reported.
“The events are a much more alarming turn and a much more durable shift in outlook from our perspective. Throughout last week, we were inclined to think the situation remained fundamentally uncertain and that the shifting headlines didn’t ultimately change the outlook too much — but we are now in a different world, with the key question being how bad things will get,” said EvercoreISI strategist Tobin Marcus.
Brian Sozzi | Yahoo! Finance