Publicis exits Russia, IPG suspends operations

Chris Pash
By Chris Pash | 16 March 2022
 
Credit: Andrew Teoh via Unsplash

Publicis Groupe has moved ownership of its agencies in Russia to local management and IPG has suspended operations but leaves local staff with six months pay.

Sergey Koptev, founding chairman of Publicis in Russia, now has control, with a contractual condition to ensure a future for the 1,200 employees there.  

WPP last week announced the closure of operations in Russia following the invasion of Ukraine. The company has nearly 1,400 people in Russia.

Publicis CEO Arthur Sadoun: “Since the start of the invasion, we have been working on exiting Russia as we strongly condemn the unilateral aggression against Ukraine.

"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 with a solution that was truly people-first, because our 1200 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.

"As the violence and humanitarian crises in Ukraine deepen, Publicis’ first priority remains the safety of its people and their families. The Groupe is more committed than ever to bringing them the security, relocation and financial support they need in this incredibly difficult time. 

“The safety of our people in Ukraine remains our number one focus.

"We are in daily contact with all 350 of them on an individual basis and doing everything we can to protect them. From security alert systems, to psychological and mental health support, to help with visas, or guaranteeing salaries for everyone for the entire year, we will continue to stand by their side, be exhaustive in the solutions we bring and immediate in the aid we provide." 

IPG CEO Philippe Krakowsky says the Russian question is a "difficult moral dilemma".

He says discontinuing operations in Russia could mean abandoning 200 colleagues there.

"We have decided to suspend our operations in Russia," he wrote on LinkedIn

"By having taken the time these past two weeks to plan for this eventuality, we will be able to leave our Russian teams with enough capital on their balance sheet to pay their people for a minimum of six months.

"We will also be engaging with them in the coming weeks, as we cede control of all aspects of management and operations to the local leadership team, in order to ensure continuity for any non-Russian clients who remain active in the market.

"What we are witnessing in Ukraine is a tragic situation with profound consequences for our collective future. It will re-shape the international order globally, with lasting consequences for Europe, and have a ripple effect on political alignments all the way to Asia.

"It will also likely reverberate in countries across the globe where political or public figures have in recent years allied themselves with the Russian regime."

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