US regulator questions companies over exposure to Russian invasion

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May 3 (Reuters) – The top U.S. securities regulator told companies on Tuesday they could be required to disclose the impact Russia’s invasion of Ukraine could have on their businesses, for example on operations or employee bases in either country, or if their assets were nationalized.

In orientation posted on its website, the U.S. Securities and Exchange Commission said its corporate finance division believes companies may also have to expose their exposure to the conflict through securities traded in Russia or sanctions against individuals. or entities.

Since the invasion, “many companies have faced heightened cybersecurity risks, increased or persistent supply chain challenges, and commodity price volatility,” the SEC wrote.

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Nearly 1,000 Western companies have shut down or scaled back operations in Russia since its invasion began in February, a Yale University says count. Many have started reporting associated losses. Read more

But the degree of pullback varies, leaving potential exposure that investors might be interested in. On Yale’s list as of Tuesday afternoon, 144 companies were holding back only new investments or developments, for example, and another 125 were cutting some operations but continuing others.

SEC officials did not immediately respond to a request for additional comment.

In the agency’s notice, he provided a sample of questions he might have for businesses related to the situation. This included asking companies to describe the impacts “resulting from the reaction of your investors, employees, customers and/or other stakeholders to any action or inaction resulting from or related to the invasion, including the payment of taxes to the Russian Federation; and what may result if Russia or another government nationalizes your assets or operations in Russia, Belarus or Ukraine.”

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Reporting by Ross Kerber; edited by Richard Pullin

Our standards: The Thomson Reuters Trust Principles.

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