In the wake of Russia’s military operation in neighbouring Ukraine, many of the world’s leading paper, printing, and packaging companies have been deeply impacted by a sudden refusal to deal with Russian firms, drawing the ire of the industrial community.
On the whole, the military incursion is severing key supply chains – already in disarray from the outstretched impact of the COVID-19 pandemic – and setting global companies on a scramble to comply with an ever-growing set of sanctions.
Several high-profile 3D printing companies have ruled out sales to Russian businesses as part of the global economic sanctions imposed against Moscow. World leaders in additive manufacturing including American 3D Systems and HP, German EOS, and Polish Zortrax have broken off negotiations with Russian buyers.
Avi Reichental, co-founder, Chairman, and CEO of California-based Nexa3D, voiced his opinion on Linkedin, condemning Kremlin’s unprecedented military aggression against Ukraine. “Now is the time for the free world’s duly-elected leadership to stand united and be counted.”
With Russian invasion of Ukraine – the “bread basket of Europe” – now into its second week, state-level deterrents have targeted high-ranking Russian officials and state-owned broadcasters, besides industries including aerospace, banking, energy, and sports amongst others. Many major companies such as Apple, Ford, and Nike are pulling their products from the Russian market.
The West has also pledged to exclude seven Russian banks from SWIFT (The Society for Worldwide Interbank Financial Telecommunication), a Belgium-based messaging service that connects financial institutions globally, as part of a barrage of sanctions designed to limit Moscow’s ability to fund its war in Ukraine.
The 3D printing industry has also echoed a similar response. Taking to Linkedin, Marie Langer, CEO of EOS, has announced a total withdrawal of business from 25 February, 2022, with Russian companies, despite the consequences. “It’s the right time to stand up for our democratic beliefs and fight together for peace.”
Jeffrey Graves, President and CEO of 3D Systems, has announced to take a stand against the humanitarian implications of the Russian invasion by immediately suspending all sales to Russia as a “symbolic” gesture and would address the markets there once the invasion is over.
Though complying with the sanctions imposed by the US, HP CEO Enrique Lores joined his competitors, stopping short of criticizing Russia’s acts as the “latest in a series of global challenges.” He also admitted that US sanctions against Russia would impact its top line and bottom line business prospects across FY 2022.
In response to the invasion, Zortrax has scrapped its $65 million deal with Rusatom Additive Technologies (RusAT). Mariusz Babula, CEO of Zortrax, says that the “Russian aggression against Ukraine left us all shocked and outraged,” forcing them to withdraw from further negotiations with the Russian state-owned company.
Looking at the near future, refusal to deal with 3D printing companies in Russia can at least limit their technologies’ impact on the conflict.
But the same cannot be said of the other sectors in the printing and packaging sector, the second largest after the cinema industry.
Mondi, the UK-headquartered multinational packaging and paper group’s Lviv plant in western Ukraine, has suspended its production of paper bags in that country, while its Russian pulp and paper facilities remain operational. The Lviv plant accounts for a larger Russian operation for around 12% of group sales that primarily serves the domestic market. While Mondi’s share price has dropped 19.6% since the Russian invasion of Ukraine, its integrated pulp, packaging paper, and uncoated fine paper mill at Syktyvkar, capital city of Russia’s Komi Republic located north-east of Moscow, is described as a high-margin, cost-competitive facility.
Seagull Scientific has suspended the sales of its BarTender software to Russia and Belarus. “With war raging on between Russia and Ukraine, we have chosen to halt the sales of our software and has also suspended all new software license, printer add-on, and sales upgradation with immediate effect,” says President and CEO Harold Boe.
The move made by these companies is an interesting one for a variety of reasons, perhaps the most significant being that it breaks the illusory fourth wall that separates business from politics, which in reality are son intrinsically linked.
After all, what the world deserves after grappling with over two years of the COVID-19 catastrophe is peace and a prosperous future for all.
EOS’s Langer says, “Let’s all raise our voice towards political and business decision makers to do what is right,” summarizing the issue.
