Publicis Groupe and IPG have each announced their plans for their respective companies in Russia amid the crisis in Ukraine.
French-owned Publicis Groupe has strongly condemned Russia’s aggression and in response stopped all operations and investment in the country in a statement made by Arthur Sadoun, chairman of the management board of Publicis Groupe.
The multinational agency has handed over control of its agencies – such as Zenith and Leo Burnett – to Sergey Koptev, the founding chairman of Publicis in Russia under a contractual commitment of “ensuring a future” for its 1,200 employees in the country.
Meanwhile, Sadoun noted that they are continuing to support and ensure the safety of their 350 employees in Ukraine, and their families.
“We are in daily contact with each of them and do everything we can to protect them. Whether it’s setting up security alert systems, psychological support, help with their visas or guaranteeing their salaries for the whole year, we are by their side to bring them ever more help every day and as quickly as possible,” he added.
Meanwhile, IPG CEO Philippe Krakowsky announced the company’s decision to suspend operations in Russia via a post on LinkedIn.
He wrote: “Because we have never owned a media business in Russia, we did not have significant concerns that our media buying was either fueling the local economy, or funding media being used by the state. Essentially, we hoped that by supporting our colleagues in Russia we could live up to the part of our DNA that values and seeks to protect our people across IPG, yet also live up to the international sanctions against the Russian regime,” noting elsewhere they have approximately 200 Russian staffers.
However, he noted, with the recent attacks on civilians and hospitals, as well as escalating conflict indicted continued, the decision to suspend operations in Russia was made.
“By having taken the time these past two weeks to plan for this eventuality, we will be able to leave our Russian teams with enough capital on their balance sheet to pay their people for a minimum of six months.”
Krakowsky continued: “We will also be engaging with them in the coming weeks, as we cede control of all aspects of management and operations to the local leadership team, in order to ensure continuity for any non-Russian clients who remain active in the market.
“What we are witnessing in Ukraine is a tragic situation with profound consequences for our collective future. It will re-shape the international order globally, with lasting consequences for Europe, and have a ripple effect on political alignments all the way to Asia.
“It will also likely reverberate in countries across the globe where political or public figures have in recent years allied themselves with the Russian regime,” he added.
Krakowsky said: “That’s why I wanted to take the time to share with you in such depth the thinking that has gone into our decision-making. And more importantly, to let you know about the amazing things our people have been able to accomplish, on the ground, to help their Ukrainian colleagues and the Ukrainian people.
“The kind of work individuals across IPG, and organizations within IPG, have been doing these past two weeks is something we should all be proud of,” he added.