Publicis suspends operations in Russia

Publicis is the latest holding company to suspend its operations, engagement and investment in Russia due to the ongoing invasion of Ukraine. In a video shared with Publicis employees today, CEO Arthur Sadoun confirmed the decision and said the holding company will be handing over control of its Russian operations to Sergey Koptev, founding chairman of Publicis in Russia, with the “clear contractual condition of securing a future” for employees there. Subscribe to Ad Age now for the latest industry news and analysis. “Since the start of the invasion, we have been working on exiting Russia as we strongly condemn the unilateral aggression against Ukraine," Sadoun said in a statement. “We were committed to taking strong actions that fully respond to the gravity of the situation. But we were determined to take the necessary time to come up with a solution that was truly people-first, because our 1,200 employees in Russia are our people too. We couldn’t just abandon them. By ceding control of our Russian operations to Sergey, we are securing a future path for our colleagues while immediately stopping all of our operations, engagement and investment in Russia." Publicis declined to comment beyond its press release and video. 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 halted its operations in Russia and P&G reduced the scale of its operations in the country. In the video, Sadoun “condemned” the war and addressed what the holding company is doing to support its 350 Ukraine employees, beyond its salary guarantee for the rest of the year. “When it comes to Ukraine, of course, the safety of our teams remains our No. 1 priority as violence on civilians increases and the humanitarian crisis deepens, we are doing everything we can to protect them,” Sadoun said in the video. “We are in daily contact with all the 350 of them [Ukraine employees] on an individual basis. We are bringing them the security, relocation, and financial support they need in this incredibly difficult time. We are helping everyone who has to leave their home, supporting them with visa and paperwork. Thanks to Marcel and volunteers from the group in neighboring countries we are welcoming our people across the border and providing guidance, transport, and accommodations.”The holding company is also matching donations for a Ukraine fundraiser which was set up through Marcel. The news comes a day after IPG also paused its operations in Russia, affecting its 200 employees in the country. WPP and Accenture were ahead of the pack, announcing the suspension of their business in the country earlier this month. A week later Stagwell also announced it will pause operations for its 10-person office in Russia. Subscribe to Ad Age now for the latest industry news and analysis. Omnicom wasn't immediately available for comment. Havas provided the following comment: “We are all deeply concerned by the situation in Ukraine. The devastating violence has shocked us profoundly and our thoughts are with everyone affected by this conflict. Havas is present in Ukraine—we have 250 people working in three agencies. We are very concerned for their welfare. Our absolute priority since the beginning of the war has been to do everything we can to provide financial and logistical support to our teams there. We have been struck by the great outpouring of solidarity within our Group: our teams in Poland, the Czech Republic, Hungary and the Baltics have been assisting those able to cross the border from Ukraine by providing transport, provisions and even welcoming them into their homes. We are following the situation very closely. We don’t operate directly in Russia but have a local partner that serves our global clients. We have committed to freezing all new investments in the country until a peaceful resolution can be reached.” Dentsu also provided a comment on their business in Russia. "The health and safety of our employees continue to be our top priority and we are providing additional support to our people in need," the company wrote in a statement. "We are reviewing all relationships with Russian companies to ensure we are fully compliant with international sanctions. We will continue to rigorously minimize any impact on our clients’ activities as well as Dentsu operations. In regard to global businesses closing their Russian operations, we operate a joint venture in Russia and we are closely reviewing this situation to better guide our clients and also make informed decisions for our business, our people, and communities as a whole.”

Publicis suspends operations in Russia

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