U.S. Companies Get Hurt By Sanctions Targeting Russia

[Purveyor]

The economic sanctions the United States imposed on Russia over the Ukraine crisis don’t hurt only the Russian economy. They hurt some U.S. companies that do business in Russia, too.

John Deere, which makes heavy farm equipment and has two factories in Russia, was the latest company to blame weaker sales on economic sanctions. Despite beating its fiscal second-quarter earnings by 16 cents, the company best-known for its green and yellow tractors, cut its full-year outlook, saying sales of its tractors and harvesters would fall “significantly” in Ukraine, Russia and other ex-Soviet republics. The company cited credit restrictions by its customers there for the weak outlook.

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The United States and European Union are trying to pressure Russia into dialing back its involvement in the political affairs of Ukraine by imposing economic sanctions that target banks and dozens of officials.

U.S. companies view Russia as a “growth” market, and they do about $40 billion worth of business annually with Russia.
After Russia’s annexation of Crimea, McDonald’s closed three of its fast-food outlets there. The company said it had to cut evening hours in some stores in the region because of less foot traffic. The hamburger giant has more than 400 stores in Russia and gets roughly 9% of its revenue there.

more...

http://americasmarkets.usatoday.com/2014/05/14/u-s-companies-get-hurt-by-sanctions-targeting-russia/

[TexasTowelie]

1. It's no wonder that I'm staying up late and losing sleep about this devasting blow

to American corporatism.

[1000words]

2. The underlying irony to global corporatism

[pampango]

3. Typical neo-cons. They want to 'punish' a transgressor but want it to be "painless" to themselves.

That's showing some real commitment to the cause there guys. "I'm willing to teach those guys a lesson - as long as it no skin off my nose. Someone else should pay the price for this lesson. Not me. How about using the military. Those guys are all volunteers." Typical neo-con BS. Where's McCain when you need him.

FDR believed that more trade would make countries economically interdependent which would help make world wars less likely. While there hasn't been a WWIII yet, the downside is that economic pain in a country like Russia is likely to cause economic pain in Europe and the US because of the economic interdependency.