Dentsu Group to cease bussiness in Russia through transfer of their share in the local joint venture to the national partner (UPDATED)

Latest update on 17th March 2022 at 17:00 pm

Dentsu Group Inc. has unveiled today a comprehensive pool of measures in order to support Ukraine, its employees in that country and comply with the international economic sanctions agreed aginst The Russian Federation.

“In addition to the safety and security of our employees and related parties, the Group’s business in Russia, which is being led and carried out by approximately 1,500 people in a joint venture with a local company in Russia, is being reviewed from the perspective of complying with international sanctions as a global company, and we are proceeding with negotiations to transfer the ownership of our joint venture in Russia to the local company,” says the official communication published today by the Japanese multinational.

Dentsu Inc. is the 5th ad multinational announcig the cease of business in Russia after Accenture,WPP, Inter Public Group (IPG) and Publicis.
Just some hours after publishing this post Omnicom Media Group officially announced OMG’s exit from the Russian market as well.

People first

“…based on the guiding principle of ‘we must be a force for good’ which is a premise of the ‘Dentsu Group Code of Conduct,’ it will donate approximately Yen140 million as humanitarian assistance to Ukraine and the surrounding areas, and that it is working to support activities in neighboring countries and ensure the safety of dentsu employees,” underscores Dentsu in its press release.

A comprehensive package of measures besides cutting business in Russia

Leaving aside the exit from Russia the actions planed by the Japanese multinational include:

1.- Donation of approximately Yen 140 million

The money will be invested in helping those people affected in Ukraine and the surrounding areas.

“…we are preparing to donate Yen100 million, after considering appropriate donation destinations, in addition to the £250,000 (around Yen38 million) that h alreave been already provided as urgent aid to the Ukrainian Red Cross Society on February 25th.”

2.- Support activities for refugee relief

“We are fully cooperating in philanthropic and support activities for the relief of refugees, including those in neighboring countries, and will continue to do so.

Specifically, we are providing accommodation arrangements, border transfers, legal assistance, psychological care, and assistance with daily necessities (such as clothing, first aid, mobile phones, sleeping bags and food) for people in the CEE (Central and Eastern Europe), DACH (Germany (D), Austria (A), and Switzerland (CH)), and Scandinavia regions,” Dentsu explains.

3.- Ensuring employee safety and security: relocation of employees working in Ukraine and relief for stressed empoyees outside the country

“We are giving top priority to measures that ensure the safety and security of our employees and their families in the relevant countries and surrounding areas, and those other related parties who are cooperating with us.

Approximately 500 people were working for our affiliate with a local partner that handled the Group’s business in Ukraine, but business has already been suspended and we are providing family transfer, legal and housing support for those employees together with employment opportunities at other dentsu companies in other regions.

In addition, in response to the growing mental stress on employees outside of the affected markets, we are continuing to strengthen employee support, such as expanding the use of employee assistance programs and counseling in many of our markets,” Dentu Inc. underscores.

Image over the headline.- Hiroshi Igarashi (President & CEO Dentsu Inc.).© Dentsu Inc.

Related external links:

Omnicom media Group announces exit from Russian market

Dentu’s announcement

Publicis Groupe announcement

IPG CEO Philippe Krakowsky’s update and explanation on help for Ukraine and discontinuing business in Russia

WPP announcement

Accenture announcement

Related Eastwind links:

Cannes Lions will not accept submissions or delegations from Russia in 2022 festival

The One Club for Creativity will refund fees for entries coming from Ukraine but not ban Russian creatives

Tik Tok suspends livestreaming and video services in Russia

Ukraine’s Ministry of Digital Transformation launches crypto fundraising site called Aid for Ukraine

Ukraine war.- Children are not alone thanks to a caring bot

Related Eastwind links Spanish edition:

IAB Spain suspende oficialmente toda relación con IAB Rusia e IAB Bielorrusia

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