EY has canceled its 4,700-person business in Russia, becoming the third of the Big Four to announce a divorce from its operations in the country since invading Ukraine.
PwC and KPMG already have announced similar moves on Sunday night, citing the actions of the Russian government in Ukraine. Another Big Four company, Deloitte, said last week that it was reviewing “its business and presence in Russia”.
The withdrawal is the most significant retreat by professional services firms from the country since the conflict in Ukraine began last month.
“Amid the escalation of war, the global organization EY will no longer serve any client of the Russian government, state-owned enterprises or sanctioned organizations and individuals anywhere in the world.” EY said Monday.
The company said it has begun restructuring to separate the Russian member from the group. “This is not something we take lightly,” it said, calling the decision “heartbreaking” and the fight “shocking and disgusting”.
EY’s Russian employees account for more than 1.5% of its global workforce of 299,000. It also employs 700 people in Ukraine.
Between them, EY, KPMG and PwC have more than 12,000 employees and partners in Russia.
The Big Four is structured as a network of locally owned partnerships, meaning that their operations in Russia will continue to exist as independent entities under the new name and will operate free of charge for both Russian and international customers.
Russian businesses are not prohibited from working for entities sanctioned by Western governments. Compliance with Western sanctions is a violation under Russian law, and the country’s auditors also face significant penalties if they resign from contracts with owned entities. state, industry insiders said.
The Big Four, which provide tax and advisory advice as well as accounting and auditing services, are often free to recommend work for independent firms in countries where they are not present.
The accountants and consultants who have announced they will withdraw from Russia are likely scrutinize the face This week details their plans. For example, neither PwC nor KPMG have committed to ending overseas audits of Russian state-owned entities.
Consultants McKinsey and Boston Consulting Group announced last week that it was suspending work for Russian clients but said it would continue to work on some existing projects in the country and keep an office in Moscow open.
