Agencies pull out of Russia

Some of the largest real estate agencies are rethinking their activities in Russia as the war in Ukraine continues. Savills said it has “suspended” what it called a “long-standing relationship” with a franchisee through which it operates in Russia. “Savills is appalled by the scenes of humanitarian tragedy which are unfolding across Ukraine, has already made significant donations to humanitarian relief agencies working in Ukraine and neighbouring countries to help alleviate this suffering, and is supporting those of its people who are personally affected,” a spokesman for the firm said. “Savills has a long-standing zero tolerance for dealing with sanctioned parties and does not engage in business with designated sanctioned entities or persons.” Knight Frank has made similar moves to distance itself from its own Russian partner. “With immediate effect, and with their agreement, we have suspended the commercial arrangements with our independent licensee in Russia,” a spokesman for the agency said. Avison Young said it has only a small footprint in Russia, with just one affiliate partner. “We have suspended our operating agreement with the firm out of an abundance of caution, not as a reflection on the valued team in place there,” a spokesman said, adding: “Our hearts are with the civilians caught in the middle of this international crisis.” At JLL, a spokesman said: “It remains a highly volatile and dynamic situation that we continue to monitor closely. It is too early to predict any potential market or business changes… Our offices in Russia remain open and we are in the process of helping our people and clients adjust to the rapidly changing situation. Our focus is guided solely by the safety and wellbeing of our people and the commitment to help our clients as they consider actions regarding their own operations moving forward.” Other agencies directed EG to earlier statements on the conflict. CBRE said last week: “CBRE strongly denounces Russia’s invasion of Ukraine, which has precipitated the humanitarian crisis. This aggression is rightly being opposed by most of the world community. We urge the leaders of Russia to immediately cease their military action.” The agency added: “Among the Russian people, we have hundreds of colleagues and friends, who remain hard at work in support of our clients with operations there. We are motivated by our obligations to our clients as they assess their operations under rapidly changing circumstances.” As the war has escalated following Russia’s invasion of Ukraine, companies in myriad sectors have come under pressure to distance themselves from business dealings with Russian entities. Last week British Land confirmed that it will look to end a London office leasing deal with the trading arm of Gazprom. This morning, bar operator Nightcap said it would cease selling Russian vodka across its 27 venues, and would instead offer customers a Ukrainian brand. To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews Image © James Veysey/Shutterstock