PwC and KPMG withdraw from Russia Business

Accounting giants PwC and KPMG are cutting ties with Russia as corporate backlash intensifies against Vladimir Putin’s invasion of Ukraine.

Member companies in Russia will leave the networks, both announced separately on Sunday evening.

Writing on LinkedIn, PwC Global Chairman Robert E. Moritz said, “We all continue to be shocked and horrified by the senseless war the Russian government is inflicting on Ukraine and its people.

“Our main goal has been to help our Ukrainian colleagues and to support humanitarian efforts to help the Ukrainian people.

“We also thought about how we can act in the management of our network.

“We have decided that under these circumstances PwC should not have a member firm in Russia and therefore PwC Russia will leave the network.”

KPMG said its member firms in Belarus would also leave.

Also writing on LinkedIn, he said: “We believe we have a responsibility, along with other global companies, to respond to the Russian government’s ongoing military attack on Ukraine.

“As a result, our Russian and Belarusian businesses will leave the KPMG network.

“KPMG has over 4,500 people in Russia and Belarus, and ending our working relationships with them, many of whom have been with KPMG for many decades, is incredibly difficult.

“This decision does not concern them – it is a consequence of the actions of the Russian government.”

The PwC member firm in Russia has around 3,700 workers and PwC said it would work with them on an “orderly transition”.

A growing number of companies are leaving Russia to condemn the Kremlin attack on Ukraine.

Oil and gas giants Shell and BP are both quitting their ties with state-backed oil and gas companies, while retailers like Louis Vuitton and Chanel have also temporarily closed stores.

Decisions by PwC and KPMG should put pressure on other Big Four auditors to follow suit.

Deloitte said last week that it was “reviewing our business and our presence in Russia” and “stands unequivocally with the people of Ukraine.”

EY said it was “deeply concerned about the humanitarian catastrophe unfolding in Ukraine”.

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This notice was published: 2022-03-07 06:00:00

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