Letters to Trade Associations - Chairwoman Waters Sends Letter to the Financial and Commercial Industry Over Russian Disinvestment

Letter

Dear Advocacy Leader[1]:

The American people, their representatives in Congress, the Biden Administration, NATO member countries, and many of our allies and partners around the world are in awe of the heroic resistance and courageous perseverance of the Ukrainian people. Together, we are committed in our collective resolve to support the Ukrainian people against Russian aggression.

Stopping Russia's ability to wage wanton wars requires us to employ all of the elements of America's strength, including imposing substantial, multi-layered economic and trade sanctions on the Russian President Putin, the Kremlin, and those who aid Russia and enable it to continue to attack Ukraine and commit countless war crimes.

I have been heartened by how many companies in the financial services industry and in corporate America have taken actions above and beyond those explicitly called for by U.S. sanctions. With varying degrees of withdrawals, iconic American car and airplane giants,[2] accounting and consulting firms,[3] Wall Street firms,[4] and food and entertainment companies that have become household names in Russia[5] have made the decision to voluntarily leave Russia. Having spent years before coming to Congress pushing for an economic boycott to end Apartheid in South Africa, I know that when the full might of the U.S. economy is applied against countries that commit atrocities, we can bring about real and lasting change for the benefit of all.

Earlier last week, Ukrainian President Zelenskyy made a joint address to the United States Congress. President Zelenskyy specifically called on American businesses to withdraw "immediately" from Russian markets, "because Russian markets are flooded with [Ukrainian] blood." In answer to Zelenskyy's call, my Committee passed five bills--four of which were bipartisan--to further isolate Russia from the global economy. I will continue to work in a bipartisan manner on legislation related to punishing Russia and providing relief to the people of Ukraine.

Even though multiple companies have voluntarily divested from Russia, the Committee currently lacks a clear picture of the extent of these divestments. To that end, I am requesting detailed information on the significant actions that America's financial institutions and businesses have taken to end their relationships and engagements in Russia, with the Kremlin, and with businesses that support the Russian government. Specifically, the Committee is interested in understanding:
Actions undertaken by your industry and identities of your members that have decided to exit or wind-down business activities (including financial relationships) in Russia and with Russia-based firms since February 24, 2022;

The identities of companies that remain engaged in business activities in Russia, and with Russia-based firms, and what their plans are to either wind-down or end such activities, or the reasons why they plan to continue such activities;

Activities undertaken by your industry and members to comply with U.S., and allied sanctions (including internal risk analysis and sanctions compliance activities).

Please see the attached document for guidance on the collection of this information.

Thank you for your prompt attention.

Sincerely,

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