The fact that all four of the world’s largest auditing firms simultaneously announced their withdrawal from Russia could affect the times.
On the afternoon of March 7, RT Radio (Russia) broadcast a news, 3 of the 4 “Big Four” largest auditing firms on the planet decided to leave Russia. This activity is believed to be the result of Moscow’s military operation in Ukraine. These three companies are: KPMG, PricewaterhouseCoopers (PwC) and Ernst & Young (EY). And Deloitte did not announce the decision until late at night 7/3.
The Anglo-Dutch auditing and consulting giant KPMG, which has more than 4,500 partners and employees in Russia and Belarus, said it was pushing to leave the two countries.
“We believe that, together with other global businesses, there is a responsibility to respond to Russia’s ongoing military action in Ukraine. As a result, our Russian and Belarusian companies will be leaving the KPMG network. “, a spokesperson for KMPG International said in the statement.
This person called the decision to end the company’s relationship with Russian employees and partners “extremely difficult”.
“This decision has nothing to do with them – it is a consequence of the actions of the Russian Government. We are a purpose-driven and value-driven organization that believes in doing the right thing. We will do all we can to ensure we provide transitional support to former colleagues affected by this decision,” the statement read.
Meanwhile, London-based PricewaterhouseCoopers (PwC) also announced that Russia would be leaving the network. The company has been operating in Russia since the 1990s and has 3,700 partners and employees.
“As a result of the Russian government’s war in Ukraine, we have decided under all circumstances that PwC should not have a subsidiary in Russia. As a result, PwC Russia will leave the network,” Reuters quoted in a company announcement.
In the newsletter published by Nikkei Asia on the afternoon of March 7, there was no Ernst & Young (EY). EY just announced to cut its member company in Russia from the network on the night of March 7.
“Amid the escalation of hostilities, the global organization EY will not serve any clients in the Russian government, state-owned enterprises or sanctioned organizations and individuals anywhere in the world. EY has begun restructuring the Russian subsidiary to separate it from the global network,” the company said in a statement.
Updated at more than 23:00 on March 7, Deloitte has just announced its withdrawal from Russia and Belarus because of the war in Ukraine. Bloomberg did an update for this special event.
According to Reuters, Deloitte conducted a review last week and said it will no longer operate in Russia and Belarus.
“We will separate our operations in Russia and Belarus from our global network of member companies. Deloitte will no longer operate in Russia and Belarus,” Punit Renjen said in a statement. Deloitte has 3,000 employees in these two countries.
“Deloitte is the last Big Four company to announce it is leaving Russia,” commented Financial News (UK). Also in the same newspaper, former Finance Minister of Ukraine Natalie Jaresko said: “Western businesses must divest [in Russia] now”.
Russia’s military activity in Ukraine, which was launched late last month, has led to international sanctions targeting the Russian economy and prominent political figures and businessmen.
Many foreign companies have announced to suspend operations in Russia amid the sanctions, including credit card companies Visa and MasterCard, tech giants including Microsoft, Apple and Dell. Several car manufacturers, retailers and even clothing brands have also ceased operations in Russia.