EY, KPMG and PwC are latest to exit Russia on Ukraine war

EY, PricewaterhouseCoopers LLP and KPMG LLP are pulling out of Russia in response to the war in Ukraine, the latest companies to conclude business ties to the country are untenable in the wake of its invasion of Ukraine.

EY said in a statement it “has commenced a restructuring of its Russian member firm to separate it from the global network.” It said its operations in Russia have more than 4,700 people and EY will no longer serve any Russian government clients, state-owned enterprises or sanctioned entities and individuals anywhere in the world.

In separate statements Sunday, PwC said PwC Russia will leave the global network, and KPMG announced similar measures for its business. PwC has 3,700 staff in Russia, while its rival has more than 4,500 people in Russia and Belarus.

“They did not ask for this senseless war,” a PwC note to staff seen by Bloomberg said. PwC member firms outside Russia will exit any work for Russian entities and individuals subject to sanctions.

KPMG International issued a statement. “We believe we have a responsibility, along with other global businesses, to respond to the Russian government’s ongoing military attack on Ukraine,” it said. “As a result, our Russia and Belarus firms will leave the KPMG network. 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.”

KPMG had previously announced that it would cut ties with certain clients subjected to sanctions.

Deloitte, the other member of the so-called Big Four professional services firm, said in a March 2 statement the network “is currently reviewing our business and presence in Russia.” Deloitte doesn’t serve any entities of Russia’s central government, the statement said.

Read more about the foreign companies leaving Russia

— With assistance from Jackie Davalos, KPMG statement added by Accounting Today