Western businesses pull out of Russia

IT TOOK MORE than 30 years for BP, a British energy firm, to build its Russian business. It took less than four days to decide to dismantle it. As Vladimir Putin’s forces invaded Ukraine early on February 24th, the logic of BP’s 20% stake in Rosneft, Russia’s state-owned oil giant, began to collapse. BP’s board met to discuss the matter on February 25th; later that day Britain’s business secretary, Kwasi Kwarteng, expressed the government’s concerns to Bernard Looney, BP’s boss. By February 27th the board was ready to make its decision public: BP would sell its stake in Rosneft. Mr Looney has resigned from Rosneft’s board (as has his predecessor, Bob Dudley). The company may face a write-down of up to $25bn.

Mr Putin’s war has prompted a reckoning for multinational companies. Russia presents a host of risks, from reputational damage to logistical disruption and the peril of violating sanctions. For many firms disentangling from Russia, a middling market, will do little damage to their broader business. For others it will be financially painful and logistically difficult.