Tata Steel will stop doing biz with Russia
MUMBAI: Tatas, one of India’s best known brands globally, have cut business ties with Russia as the corporate fallout from the invasion of Ukraine spreads. On Wednesday, Tata Steel, which defines the heritage of the 154-year-old Tata conglomerate, said it has taken a “conscious decision to stop doing business with Russia”.
Previously, British sister concern Jaguar Land Rover (JLR) paused vehicle shipments to Russia citing “trading challenges”. JLR sold over 13,000 luxury vehicles in Russia last year. Tata Steel sourced raw materials, mainly coal, from Russia to produce the metal.
“To ensure business continuity, all our steel manufacturing sites in India, the UK and the Netherlands have sourced alternative supplies of raw materials to end its dependence on Russia,” the company said. India has not imposed any sanctions on Russia and has also not criticised its invasion of Ukraine.
“The EU will end their business ties and our businesses in the UK and Netherlands are part of this decision,” Reuters reported, quoting a Tata Steel executive. Last week, Infosys, India’s no.2 software services company, said it would move business out of Russia and pursue alternate options. Infosys employs less than 100 people in that country.
Larger rival TCS — part of the Tata conglomerate — had said though it does not have any operations in Russia, it is helping clients maintain their business continuity plans as well as sees an opportunity to ramp up hiring in Eastern Europe, where it employs about 5,000 people.
“A lot of people have migrated out of Ukraine to countries like Poland and Hungary. They are asking for jobs which gives us an opportunity to increase local hiring there,” TCS CEO Rajesh Gopinathan had said. Sister concern Tata Power, which had bagged a mining licence for a thermal coal mine in Kamchatka province in Russia for $4.7 million in 2017, has recently applied for its cancellation.