EY, KPMG and PwC cut ties with Russia

EY, KPMG and PwC have announced plans to cut ties with Russia following the invasion of Ukraine, with Russian and Belarusian member firms to be removed from their global networks.

PwC explained that, as a result of the Russian government’s invasion of Ukraine, it was decided that the group should not have a member firm in Russia, confirming that PwC Russia will therefore leave the network.

“Our main focus at PwC continues to be doing all we can to help our Ukrainian colleagues and support the humanitarian efforts to aid the people of Ukraine who have been devastated by this invasion,” a spokesperson stated.

“We are also committed to working with our colleagues at PwC Russia to undertake an orderly transition for the business, and with a focus on the wellbeing of our 3,700 colleagues in PwC Russia.”

A similar announcement has been made by EY, which confirmed that, in light of the escalating war, EY has commenced a restructuring of its Russian member firm to separate it from the global network.

It also confirmed that the EY global organisation will no longer serve any Russian government clients, state-owned enterprises or sanctioned entities and individuals anywhere in the world.

The company emphasised that this decision was not taken lightly, stating: “This is heart-breaking as we have over 4700 colleagues in Russia, who have been a part of our global network for over 30 years and worked side by side with our global, Eastern European and Ukrainian colleagues.

“As the shocking and abhorrent war in Ukraine continues to escalate, our priority continues to be the safety of our people in Ukraine, Eastern Europe and across the region, and actively supporting those impacted.

“We continue to support our 700 EY colleagues with financial support, relocation, transportation and immigration services. In addition, the entire global EY family has come together to offer refugee support, including logistical assistance, volunteer work and financial donations to the wider Ukrainian community.

“As we go through this change, we will work to support those colleagues, as well as our clients in fulfilling our legal obligations and commitments.

“The resulting suffering of this conflict across Ukraine, Eastern Europe and elsewhere is deeply concerning to all of us at EY. We strongly encourage all parties to urgently work towards a peaceful resolution in Ukraine.”

In addition to this, KPMG International has stated that its Russian and Belarusian firms will leave the KPMG network, as part of the response to the Russian government’s ongoing military attack on Ukraine.

A spokesperson stated: “KPMG has over 4,500 people in Russia and Belarus, and ending our working relationship with them, many of whom have been a part of KPMG for many decades, is incredibly difficult.

"This decision is not about them – it is a consequence of the actions of the Russian government.

“We are a purpose-led and values-driven organization that believes in doing the right thing. We will seek to do all we can to ensure we provide transitional support for former colleagues impacted by this decision.”

A number of pension schemes have also announced plans to halt or cut their investments in Russian-linked assets following the nation's invasion of Ukraine.

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