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How Russia's economic isolation widened by 29 March 2022
Summary
A look back at two corporate and financial responses to the boycott of Russia in the days before 29 March 2022.
What did the boycott of Russia look like in practice by 29 March 2022? Two reports from the preceding days point to pressure on both commerce and payments.
On 23 March 2022, Nestlé announced that it would suspend sales of non-essential items in Russia. The move followed similar company boycotts of Russia, which suggests a pattern of firms scaling back their presence rather than a single isolated decision.
On 25 March 2022, Iranian officials were reported to be considering recognising the electronic payment system MIR. This was a response to moves to ban Russian banks from SWIFT. The report shows that the restrictions on Russian banks were already prompting discussion of alternative payment routes.
What the two reports show
Taken together, the reports describe pressure on two fronts: consumer goods sold inside Russia and the financial channels linking Russian banks to the outside world. Nestlé's step was limited to non-essential items. The Iranian consideration of MIR was only that, a possibility under discussion, not a finalised arrangement.
