Due to the invasion of Ukraine, Dell has reportedly ceased all operations in Russia.
In March, the company ceased sales(Opens in a new window) in Russia. According to Reuters(Opens in a new window), Dell “closed our offices and ceased all Russian operations” in mid-August as well, and that “the vast majority of Dell’s R&D center specialists and support engineers in St Petersburg and Moscow have already received job offers with competitive pay from Russian producers.”
Dell is not the first to leave as a result of this situation, and it is unlikely to be the last.
Following Russia’s invasion of Ukraine in February, many companies stopped doing business there. Some have left the country entirely in the intervening months—Intel, Nokia, and IBM all suspended operations in Russia in April, and IBM laid off its Russian employees in June—while others have opted to wait and see due to ongoing political tensions.
These developments, together with US sanctions, have compelled Russia to reconsider(Opens in a new window) its reliance on foreign firms. The country’s regulators has also fined twitch, Pinterest, Airbnb, and UPS for data storage violations; Google was fined $370 million because “YouTube deliberately promotes the dissemination of misleading information.”
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This means that both the US and the Russian governments are making it more difficult for American businesses to do business in Russia. It won’t be surprising if more tech companies, not to mention non-tech companies like McDonald’s, Starbucks(Opens in a new window), and the like, decide that maintaining a presence in Russia isn’t worth the hassle.
