IPG suspends operations in Russia

Interpublic Group of Cos. has suspended its operations in Russia following the continuing invasion of Ukraine. IPG’s decision follows those of WPP and Accenture, which closed their operations in the country earlier this month. A week later Stagwell also announced it will pause operations for its 10-person office in Russia. In a Linkedin letter, IPG CEO Phillippe Krakowsky wrote to his staff explaining the decision. He admitted in the letter that the company has been “wrestling” with the idea of possibly “abandoning” the 200 colleagues IPG has in the country. “When the invasion began, we immediately applied all international sanctions and informed clients in Russia who are prohibited parties that we would no longer continue working with them,” Krakowsky 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.” Read the latest news on industry responses to the Ukraine war. In the letter, Krakowsky said that the holding company was initially holding off for a potential ceasefire between Ukraine and Russia. “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,” Krakowsky said. “Had initial ceasefire talks been productive, we could have perhaps managed to do both. But recent and escalating attacks on civilian targets, including hospitals, make it regrettably clear that the trajectory of the conflict is escalating, and the war could well go on for some time.” Krakowsky confirmed that IPG will leave its Russian teams with enough capital on their balance sheet to pay their employees for a minimum of six months. “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.” Among IPG's agencies with operations in Russia are McCann, MullenLowe and FCB. Other holding companies Omnicom and Havas weren’t immediately available for comment. Publicis said it has no immediate updates on the matter. In a statement last week, a spokeswoman confirmed that Omnicom had 200 colleagues in Ukraine before the crisis and 2,000 employees in Russia as it was continuing to monitor the situation. Some Publicis entities with offices in Russia include Starcom, Publicis Commerce and Zenith according to their websites. Clients listed for Publicis Commerce in Russia include Procter & Gamble, beauty brand Coty, Heineken and appliance company Electrolux. Last week Heineken stopped its operations in Russia and P&G reduced the scale of its operations in the country. A few Omnicom agencies that have a presence in Russia include TBWA, DDB and OMD, according to their websites. In terms of Ukraine, Krakowsky wrote that the company is supporting its employees in the country as it can and is “working on the logistics” required for refugees to access housing and medical services. “Across IPG, our company has already donated hundreds of thousands of dollars to humanitarian organizations focused on addressing the crisis,” Krakowsky said. “Some of our agencies are providing direct monetary support to our affiliates in Ukraine, as well as assistance with IT and other operational needs. For the month of March, IPG is also matching individual gifts from IPG employees to organizations providing assistance to Ukrainians impacted by the war.” Read the latest news on industry responses to the Ukraine war.

IPG suspends operations in Russia

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