In March 2022, American Express Co suspended all operations in Russia due to Moscow’s invasion of Ukraine. Following the trend set by other Western corporations, the company made the decision to halt its operations in the country. As part of Putin’s tightening restrictions on foreign assets, banks now require his approval for any deals involving foreign companies.
Recently, Russian President Vladimir Putin issued a decree granting American Express permission to “voluntarily liquidate” its business operations in Russia. The details of how and when this process will occur are not specified in the decree. The uncertainty surrounding the future of American Express in Russia began in March 2022 when the company decided to suspend all operations in the country.
As part of Putin’s tightening restrictions on foreign assets, banks now require his approval for any deals involving foreign companies. This decree allows American Express to initiate the process of liquidating its business in Russia. The process of liquidation will involve winding down operations, closing accounts, and settling any outstanding debts or obligations to customers and partners in Russia. American Express will need to navigate these steps carefully to ensure a smooth transition out of the market. The impact of the company’s withdrawal on its customers, employees, and business partners in Russia remains to be seen.
