India’s Tata Steel yesterday (April 20) announced putting an end to all its business with Russia.
“Tata Steel does not have any operations or employees in Russia. We have taken a conscious decision to stop doing business with Russia,” the spokesperson of the Indian steel major said.
The company further said all its steel-making sites in India, the UK, and the Netherlands have sourced alternative supplies of raw materials to “end its dependence on Russia.”
Tata Steel is only the latest in the list of global firms cutting their business ties with Russia. A handful of Indian companies is part of this list. Earlier this month, IT major Infosys announced moving its business out of that country.
This flight from Russia comes amid pressure on India to distance itself from the nation due to its war on Ukraine. So far, India has abstained from openly condemning the invasion and voting against that country at the UN.
What’s behind Tata Steel’s move?
While it could be seen as taking a stand against the invasion, there’s also a larger company policy at play.
The Tata group is reportedly cutting exposure to global markets.
“Tata Group companies have begun actively cutting exposure to international markets by exiting subscale businesses to reinvest capital and intensify their local focus,” the Economic Times reported, quoting some of the conglomerate’s top executives without naming them.
In the past few months, it said, other group firms like Tata Consumer and Tata Power, too, have either merged or sold their businesses outside India.