Technology

Companies should be required to disclose their ties to Putin’s Russia

Russia’s aggression in Ukraine, and the condemnation and sanctions that ensued, highlight an economic risk to companies that do business in or with Russia or otherwise are economically tied to Russia or Russian companies. Sanctions on Russia and Russian businesses will affect those who associate with them, including companies outside of Russia. Regulators and shareholders alike must require companies to disclose these associations. The U.S. Securities and Exchange Commission (SEC) should propose a new rule that requires public companies to disclose that risk–on each reporting company’s website and in public reports to the SEC–as well as the extent to which a company has minimized that risk following Russia’s aggression. A similar rule should be proposed for investment managers whose funds invest in businesses that are tied to Russia or Russian companies. Wholly apart from a moral interest in knowing whether a company is tied to Mr. Putin’s Russia, investors should be made aware of the risks of investing in a business whose financial well-being will be affected by sanctions.

Full commentary : Companies should be required to disclose their ties to Putin’s Russia.

OODA Analyst

OODA Analyst

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