The WeWork boss says the real estate company has no plans to close its business in Russia despite the unprovoked invasion of Ukraine – and notes that WeWork’s four Moscow locations are doing “extremely well”. “.
When asked if WeWork would have to pull out of Russia due to the complicated geopolitical situation, CEO Sandeep Mathrani dismissed the possibility – told Bloomberg The company plans to continue operating in Russia.
“I do not think so. Like I said, our property works great. We hope there is a resolution to the conflict and hopefully we can continue doing business in Moscow,” Mathrani said.
WeWork’s small but healthy Moscow business, he noted, generates about $10 million in annual revenue.
While Mathrani touts WeWork’s operations in Russia, many companies based in the US and Europe have distanced themselves from the country – or cut ties entirely – in response to the invasion. The Russian ruble rose to a record low on Monday after the US and other countries implemented broad economic sanctions targeting Russian banks and institutions.
British energy giant BP said it would withdraw its nearly 20% stake in Russian oil company Rosneft, while Germany-based Daimler Truck said it would suspend business operations in Russia to deal with the war.
American airline Delta said it would suspend its code-sharing agreement with Russian airline Aeroflot. Meta and Google have turned off monetization of Russian media on their platforms, and Ukrainian officials are pushing for Apple to ban Russia from accessing its products and services, including the App Store.
Mathrani takes over as CEO of WeWork in 2020 following the division of the company’s controversial founder, Adam Neumann. The real estate company has struggled to find a foothold since its initial public offering in 2019.
WeWork finally officially went public through its SPAC merger in October 2021, although the stock has tumbled since its launch.
https://nypost.com/2022/02/28/wework-boss-sandeep-mathrani-said-the-real-estate-firm-has-no-intention-of-shuttering-its-business-in-russia-as-the-kremlin-pursues-an-unprovoked-invasion-of-ukraine-that-has-sparked-a-widening-econom/ WeWork won’t escape Russia, where biz does ‘extremely well’: CEO