Accounting firms Deloitte and EY cut ties with Russia

Two more of the big accounting firms are pulling out of Russia after up to 30 years in the country, impacting over 7500 staff.

Deloitte and EY have followed peers KPMG and PwC in exiting Russia. Picture: NCA NewsWire / David Swift

Deloitte and EY are pulling out of Russia in response to the invasion of Ukraine, following peers PwC and KPMG, who confirmed their exit from the country on Monday.

Deloitte and KPMG also said they had cut ties with their member firms in Belarus.

The consulting firms are the latest global operators to withdraw from Russia, with 15,000 partners and staff affected by the withdrawal.

“Last week, Deloitte announced it was reviewing its business in Russia. We will separate our practice in Russia and Belarus from the global network of member firms. Deloitte will no longer operate in Russia and Belarus,” the company said in a statement.

“While we know this is the right decision, it will have an impact on Deloitte’s 3,000 professionals located in Russia and Belarus.

“Like others, we know our colleagues in Russia and Belarus have no voice in the actions of their government. We will support all impacted colleagues during this transition and do all we can to assist them during this extremely difficult time.”

Deloitte had previously suspended business operations and client service in Ukraine.

KPMG said the decision to cut its Russian and Belarusian member firms from the KPMG network would affect more than 4500 staff in both countries.

“We believe we have a responsibility, along with other global businesses, to respond to the Russian government’s ongoing military attack on Ukraine. As a result, our Russia and Belarus firms will leave the KPMG network,” KPMG International said in a statement.

“KPMG has over 4500 people in Russia and Belarus, and ending our working relationship with them, many of whom have been a part of KPMG for many decades, is incredibly difficult.

“This decision is not about them – it is a consequence of the actions of the Russian government,” the consultancy said, adding that it would provide transitional support for former colleagues affected by the move.

PwC also said it would work with its 3700 colleagues in Russia “to undertake an orderly transition for the business” following its decision to sever ties.

“As a result of the Russian government’s invasion of Ukraine we have decided that, under the circumstances, PwC should not have a member firm in Russia and consequently PwC Russia will leave the network,” the consulting group said.

“Our main focus at PwC continues to be doing all we can to help our Ukrainian colleagues and support the humanitarian efforts to aid the people of Ukraine who have been devastated by this invasion.”

EY, meanwhile, late on Monday said it had commenced a restructuring of its Russian member firm to separate it from the global network.

“In light of the escalating war, the EY global organisation will no longer serve any Russian government clients, state-owned enterprises or sanctioned entities and individuals anywhere in the world.

“This is not something we take lightly. This is heart-breaking as we have over 4700 colleagues in Russia, who have been a part of our global network for over 30 years and worked side by side with our global, Eastern European and Ukrainian colleagues. As we go through this change, we will work to support those colleagues, as well as our clients in fulfilling our legal obligations and commitments.”

Elsewhere, Accenture on Friday confirmed it had shut its operations in Russia, axing 2300 employees in the process.

“Accenture stands with the people of Ukraine and the governments, companies and individuals around the world calling for the immediate end to the unlawful and horrific attack on the people of Ukraine and their freedom,” the group said.

“Therefore, Accenture is discontinuing our business in Russia. We thank our nearly 2300 colleagues in Russia for their dedication and service to Accenture over the years.”

Nike, Netflix and Ikea are among the corporate giants that have suspended operations in Russia in recent days, while US payments firms Visa and MasterCard have pulled their services in the country over the invasion.

Visa on Saturday said it would work with clients and partners within Russia to cease all Visa transactions over the coming days.

“Once complete, all transactions initiated with Visa cards issued in Russia will no longer work outside the country and any Visa cards issued by financial institutions outside of Russia will no longer work within the Russian Federation,” the payments company said.

Originally published as Accounting firms Deloitte and EY cut ties with Russia