DoTerra, Young Living still doing business in Russia, Yale said in a statement

Two suppliers of essential oils from Utah were named in a recent Yale report that lists companies still operating in Russia despite a brutal invasion of Ukraine that killed thousands and forced 10 million to flee. .

DoTerra received an “F” rating in the report among 38 companies, “which simply continue to operate in Russia as usual.”

And Young Living received a “D” rating for “postponing future planned investments / development / marketing while continuing significant business”. There are 68 other companies in this category.

The report includes about 500 companies, some of which have completely closed factories and offices, some have made no changes to operations in Russia, and hundreds in between. The Yale State Research Group updated the list on Friday.

DoTerra, however, disputes this claim.

The company for the production of essential oils is classified as “digging”, which means that it not only decided to stay in Russia, but also challenged the “requirements to exit or reduce activities,” say researchers.

Other companies in the category include Koch Industries, Huawei, Emirates Airlines and Lenovo.

But in an email, the company declined to categorize, telling Deseret News that it had cut back on Russian activities by restricting imports, suspending exports, halting marketing efforts and canceling or suspending planned investments.

DoTerra says it notified El of the adjustments and asked to remove him from the list, “but they fell silent and did not respond.”

The company’s current involvement in Russia is “very limited to members of our community who have relied on doTerra products for their well-being,” the spokesman said. “We are focused on people and continue to help them by rebuilding their business in important areas.”

Located in Pleasant Grove, doTerra also pointed to the nearly $ 700,000 it has donated to support Ukrainian refugees aimed at “fast food and supplies, temporary housing and long-term needs”.

Meanwhile, a statement from Young Living said that its “main concern was and will remain the safety and well-being of our employees, brand partners and customers in Ukraine and Russia.”

“We condemn the heinous violence we are witnessing and have suspended significant operations and new business investments in Russia, while allocating key resources to help Ukraine,” the company said.

According to a March 22 press release, Young Living has suspended “capital investments, opening regional offices, marketing activities, offline trainings and all activities” in Russia. He also canceled the Russian congress and exhibition scheduled for August this year.

Young Living does not specify the volume of current business operations in Russia. A verified Instagram account called “@younglivingrussiayl” was still active and posted images of the products as of Friday morning.

The company does business around the world, according to its website, although its global headquarters are in Lehi.

The essential oil company was also recently named in a Change.org petition calling for a boycott and accusing it of trying to “take advantage of the potential market share left by all companies now leaving Russia.”

“Putting pain in the economy”

Russia’s invasion of Ukraine on February 24 caused a massive outflow of hundreds of international companies.

The list includes major airlines such as Delta, United and American, energy giants such as Exxon, British Petroleum and Shell, technology and entertainment companies such as Spotify, Ebay and Netflix – even sports organizations such as FIFA.

The Biden administration has also imposed sanctions against Russia, including a ban on Russian flights, exports of luxury goods and military equipment. Sanctions against Russia’s central bank have frozen hundreds of billions of dollars in assets.

And on Thursday, the U.S. Treasury Department imposed new sanctions against technology companies that Russia uses to protect itself from current sanctions against the central bank and other financial institutions.

“These voluntary business blockades, combined with government sanctions … have worked to help slow the economy if not bring it to a standstill,” said Jeffrey Sonnenfeld of Yale’s Amne Nawaz School of Management at PBS News Hour.

Sonnenfeld is high on Yale’s current report on business, which is still in Russia. In another interview with CNBC, he suggested that by severing ties, companies are only harming innocent Russian employees.

“Employment? The idea of ​​these sanctions is to hurt the economy, ”he said. “We are not trying to figure out how to develop the Russian economy now. This is necessary in order for the general population to suffer enough from the fact that the economy has collapsed and the government has failed. “

A March poll by Morning Consult found that 75 percent of adults in the United States support companies that end business ties and sever ties with Russia, and 74 percent want companies to close Russian plants and offices.

Yale’s report was compiled from public sources such as “government regulations, company statements, financial analyst reports, Bloomberg, FactSet, S&P Capital IQ and Thomson Reuters,” and from non-public sources including the company’s extensive network of insiders, informants and executive contacts. except for Russian-language sources. ”

Leave a Comment