Netflix, KPMG, PwC, AMEX sever ties with Russia

Netflix, a global entertainment streaming service, major accounting firms KPMG and PwC and financial services firm American Express cut ties with Russia on Sunday as the country’s conflict with Ukraine escalated.

The latest fighting has stalled efforts to evacuate 200,000 people from the besieged Ukrainian city of Mariupol for a second straight day on Sunday, as Russian President Vladimir Putin pledged to continue his offensive.

Netflix Inc has suspended its service in Russia, a company spokesperson said. Earlier this week, Netflix temporarily halted all future projects and acquisitions in Russia as it assessed the impact of Moscow’s invasion of Ukraine.

“Given the circumstances on the ground, we have decided to suspend our service in Russia,” the Netflix spokesperson said.

Sunday’s announcements follow a number of other Western companies, including sneaker maker Nike Inc, Swedish home furnishings retailer Ikea and French bag maker Birkin Hermes, which closed stores or offices or ceased operations. Trade restrictions and supply constraints have added political pressure for companies to cease their activities in Russia.

Netflix previously said it had no plans to add public channels to its Russian service, despite regulations that would require it to carry state-backed channels.

American Express Co said it was suspending all operations in Russia and Belarus.

“In light of Russia’s continued and unwarranted attack on the people of Ukraine, American Express is suspending all operations in Russia,” the credit card company said in a statement posted on its website.

Two of the Big Four accounting firms KPMG and PricewaterhouseCoopers LLP (PwC) said on Sunday they will no longer have member firms in Russia due to the country’s invasion of Ukraine.

Auditing and consulting giant KPMG said its Russian and Belarusian firm will leave the KPMG network, a move that will affect more than 4,500 partners and employees in Russia and Belarus.

PwC also agreed that PwC Russia would leave its network. The company has operated in Russia for more than 30 years and has 3,700 associates and employees there, he said.

“Following the invasion of Ukraine by the Russian government, we have decided that under these circumstances PwC should not have a member firm in Russia and therefore PwC Russia will leave the network,” said PwC.

TikTok, the Chinese-owned video app, said on Sunday it would suspend live streaming and uploading of videos to its platform in Russia as it considers the implications of a new media law signed on Friday by Putin.

“We have no choice but to suspend live streaming and new content from our video service while we consider the implications of this security law,” the social media company said in a series of postings on Twitter.

The US government on Saturday condemned the new law, which threatens prison terms of up to 15 years for spreading what the Kremlin describes as “fake news”.