Ukraine Denounces Western Executives at Russian Companies

Now, Ukraine’s government is running a campaign to name and shame Western individuals still working for Russian companies with the aim of pressuring more to leave.

While executives aren’t breaking any laws by working at companies that aren’t sanctioned by the U.S. or its allies, Ukraine says the continued Western presence in Russian boardrooms risks undermining broader efforts to isolate the country internationally.

“The work of top Western management in Russian companies sends a false signal to Russian society and the whole world that Moscow has done nothing wrong,” said Agiya Zagrebelska of Ukraine’s National Agency on Corruption Prevention, which is leading the push to pressure Western executives.

By working for Russian companies, Westerners are effectively helping fund Russia’s war effort because those businesses pay corporate taxes to the Kremlin, Ms. Zagrebelska said.

Ukraine has built a database of more than 300 directorships at Russian companies that it says are held by Westerners, and made it publicly available via a website. German, U.S. and British executives are the most prevalent among those working for Russian companies, with finance and trade the most common industries, the data show.

Kyiv says it is asking Western governments to talk to these executives about their continued role in Russia.

“We would like to see more activity of governments in communicating to these managers the consequences of their decision to continue working in Russia,” Ms. Zagrebelska said. 

A cadre of veteran Western directors had for years served on the boards of some of Russia’s largest companies, providing a bridge to Western partners and investors. Many of those foreign executives resigned when Moscow invaded Ukraine in late February last year.

Western governments haven’t prevented their citizens from working for nonsanctioned Russian companies, though some discourage it.

A spokesman for Britain’s Foreign and Commonwealth Office said the decision is ultimately a commercial one, but the U.K. welcomes companies and executives that help isolate Moscow diplomatically and financially by leaving Russia.

Some Western executives say they have retained ties to Russia to help protect foreign investors and local employees.

One is

John Boynton,

an American who is chairman and co-founder of Yandex NV, a company dubbed Russia’s Google and the country’s biggest internet search engine. 

In June, the European Union sanctioned Yandex’s co-founder and chief executive,

Arkady Volozh,

saying the company was “responsible for promoting state media and narratives in its search results, and deranking and removing content critical of the Kremlin.”

Mr. Volozh stepped down from his role as CEO but said the sanctions were based on an inaccurate understanding of what Yandex does.

Mr. Boynton said he was horrified by the war but still had a duty to the company.

“I have had to balance those personal emotions against a sense of duty to 20,000 employees and 10,000 foreign shareholders who I don’t believe are responsible for what’s happening,” Mr. Boynton said.

Fellow American

Charles Ryan

also serves on Yandex’s board.

As an independent director, Mr. Ryan played a role in brokering a deal between Yandex and foreign investors that helped them get their capital out of the Russian company following the invasion, according to a person familiar with the matter.

By October, Yandex redeemed most of its $1.25 billion in convertible notes due 2025 for more than 70 cents on the dollar, according to company filings. 

Mr. Ryan declined to comment.

Another group of Western executives retaining connections to Russian companies is those who have longstanding ties to the country. 

For example,

Daniel Wolfe,

an American cryptocurrency entrepreneur, sits on the board of online bank Tinkoff and investment firm AFK Sistema, two posts he took up last year after the invasion of Ukraine. Mr. Wolfe first started working in Russia in 1996.

And other Western executives remain in Russia because their foreign employers still have operations there or are in the process of exiting.

Overall, it isn’t clear exactly how many Western executives retain posts at Russian companies. That is partly because Russia’s central bank has banned businesses there from publicly naming key personnel in what it said was a bid to minimize the consequences of Western sanctions.

While Ukraine hasn’t imposed sanctions on Western executives working in Russia, Ms. Zagrebelska said her agency’s recent efforts are “a warning that they may be subject to restrictions in the future.”

Write to Alistair MacDonald at [email protected] and Ben Dummett at [email protected]

Now, Ukraine’s government is running a campaign to name and shame Western individuals still working for Russian companies with the aim of pressuring more to leave.

While executives aren’t breaking any laws by working at companies that aren’t sanctioned by the U.S. or its allies, Ukraine says the continued Western presence in Russian boardrooms risks undermining broader efforts to isolate the country internationally.

“The work of top Western management in Russian companies sends a false signal to Russian society and the whole world that Moscow has done nothing wrong,” said Agiya Zagrebelska of Ukraine’s National Agency on Corruption Prevention, which is leading the push to pressure Western executives.

By working for Russian companies, Westerners are effectively helping fund Russia’s war effort because those businesses pay corporate taxes to the Kremlin, Ms. Zagrebelska said.

Ukraine has built a database of more than 300 directorships at Russian companies that it says are held by Westerners, and made it publicly available via a website. German, U.S. and British executives are the most prevalent among those working for Russian companies, with finance and trade the most common industries, the data show.

Kyiv says it is asking Western governments to talk to these executives about their continued role in Russia.

“We would like to see more activity of governments in communicating to these managers the consequences of their decision to continue working in Russia,” Ms. Zagrebelska said. 

A cadre of veteran Western directors had for years served on the boards of some of Russia’s largest companies, providing a bridge to Western partners and investors. Many of those foreign executives resigned when Moscow invaded Ukraine in late February last year.

Western governments haven’t prevented their citizens from working for nonsanctioned Russian companies, though some discourage it.

A spokesman for Britain’s Foreign and Commonwealth Office said the decision is ultimately a commercial one, but the U.K. welcomes companies and executives that help isolate Moscow diplomatically and financially by leaving Russia.

Some Western executives say they have retained ties to Russia to help protect foreign investors and local employees.

One is

John Boynton,

an American who is chairman and co-founder of Yandex NV, a company dubbed Russia’s Google and the country’s biggest internet search engine. 

In June, the European Union sanctioned Yandex’s co-founder and chief executive,

Arkady Volozh,

saying the company was “responsible for promoting state media and narratives in its search results, and deranking and removing content critical of the Kremlin.”

Mr. Volozh stepped down from his role as CEO but said the sanctions were based on an inaccurate understanding of what Yandex does.

Mr. Boynton said he was horrified by the war but still had a duty to the company.

“I have had to balance those personal emotions against a sense of duty to 20,000 employees and 10,000 foreign shareholders who I don’t believe are responsible for what’s happening,” Mr. Boynton said.

Fellow American

Charles Ryan

also serves on Yandex’s board.

As an independent director, Mr. Ryan played a role in brokering a deal between Yandex and foreign investors that helped them get their capital out of the Russian company following the invasion, according to a person familiar with the matter.

By October, Yandex redeemed most of its $1.25 billion in convertible notes due 2025 for more than 70 cents on the dollar, according to company filings. 

Mr. Ryan declined to comment.

Another group of Western executives retaining connections to Russian companies is those who have longstanding ties to the country. 

For example,

Daniel Wolfe,

an American cryptocurrency entrepreneur, sits on the board of online bank Tinkoff and investment firm AFK Sistema, two posts he took up last year after the invasion of Ukraine. Mr. Wolfe first started working in Russia in 1996.

And other Western executives remain in Russia because their foreign employers still have operations there or are in the process of exiting.

Overall, it isn’t clear exactly how many Western executives retain posts at Russian companies. That is partly because Russia’s central bank has banned businesses there from publicly naming key personnel in what it said was a bid to minimize the consequences of Western sanctions.

While Ukraine hasn’t imposed sanctions on Western executives working in Russia, Ms. Zagrebelska said her agency’s recent efforts are “a warning that they may be subject to restrictions in the future.”

Write to Alistair MacDonald at [email protected] and Ben Dummett at [email protected]