Wichita-based Koch Industries now planning ‘exit strategy’ for business in Russia
Wichita-based Koch Industries has now decided to pull its business out of Russia, after saying last month that doing so would jeopardize the safety of its employees and allow Russian authorities to take control and profit from its facilities.
President and Chief Operating Officer Dave Robertson sent out a company-wide memo on Thursday saying the company was working on an “exit strategy” for its roughly 600 employees at its two Russian glass plants, called Guardian Glass. Koch Industries also employs an additional 15 people in Russia who don’t work for Guardian.
“Guardian is working with its local management team to find an exit strategy that maintains our commitment to employees’ safety and does not result in the Russian government taking over the plants and financially benefiting from them,” he wrote. “All other Koch companies, none with operating assets in Russia, have ended or are ending business activities there.
“As a company and as individuals, we have consistently condemned Russia’s action and remain united in support of all employees and others who are harmed by this terrible war.”
Russia invaded Ukraine in an unprovoked attack in February.
A plethora of global companies, including BP oil company and Amazon, announced shortly after that they would stop their operations in Russia. Koch Industries, which has annual revenues over $100 billion, continued to run its Russian glass plants. The company reported in mid-March that leaving the facilities would put “our employees there at greater risk and do more harm than good.” In late March, after being criticized for staying, Koch announced it would donate $1.85 million in humanitarian aid to Ukraine.
Thursday’s announcement says staying in Russia is now untenable.
“Sanctions announced in early April, combined with the Russian government’s response and other actions, have made conditions untenable for Guardian to continue operations in Russia,” Robertson wrote. “As a result, Guardian asked its Russian employees to shut down the two glass plants. When made aware of this plan, Russian authorities repeated earlier warnings that local Guardian employees would violate Russian law and be prosecuted and imprisoned if they followed through with any shutdown activities, further reinforcing our concerns for employees’ safety.”
According to The Hill, which talked with a Koch Industries spokesperson, the “specific actions that drove their decision were banking sanctions from the Biden administration that made it difficult to pay workers and purchase supplies in Russia, and proposed legislation in Russia that would make it illegal for companies to comply with sanctions from other countries.”
