13 US stocks exposed to Russia and 6 that could benefit

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(Photo by Mandel NGAN/AFP) (Photo by MANDEL NGAN/AFP via Getty Images)

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US companies are fleeing Russia, which could create headwinds in the future. For companies in countries that have not imposed sanctions, however, this could be a long-term opportunity.

Since Russia invaded Ukraine, American companies have announced their intention to leave the country.


waltz disney
(DIS) will not release its films;


Apple
(AAPL) will not sell its iPhones, and


Ford engine
(F) will stop making cars. For the most part, the hit will prove intangible – Russia is simply too small a market to make such a big difference.

But not for everyone.


Citigroup
the strategists selected companies with exposure to Russia and found 60 globally. These companies, in total, have fallen 17% this year, more than double the MSCI All-Country World Index, which fell 8%.

Citigroup highlighted 13 companies in the United States. They include Coty (COTY), which makes 2.5% of its sales in this country,


PepsiCo
(PEP), which generates 4.5% of its sales there, and


FleetCor Technologies
(FLTN), which derives about 4.5% of its revenue from Russia. Oil service companies


hugue baker
(BKR),


Schlumberger
(SLB), and


Halliburton
(HAL) are on the list, as is the materials company


Corteva
(VAT) and basic consumption


Mondelez International
(MDLZ). Round it up are


Management of grid dynamics
(GDYN),


Epam systems
(EPAM),


Inter Parfums
(IPAR),


HerbalifeNutrition
(HLF), and


Brown Forman
(BF.B). If the sanctions remain in place, these companies may have to look elsewhere to offset these sales.

Citigroup’s Robert Buckland notes that companies in countries that haven’t imposed sanctions could ultimately benefit. “The impact of the current crisis could vary depending on the main rating of the company,” he writes. “For example, companies based in countries that have not introduced sanctions against Russia (e.g. China, India) will see their business affected by short-term economic disruptions, but may be offered long-term opportunities.”

Chinese and Indian companies on the list include


Geely Automotive Holdings
(0175.Hong Kong),


Great Wall Engine
(2333.Hong Kong), Yentai Jereh Oilfield Services Group (002353.China),


Petroleum and Natural Gas Company
(CGSB.India),


Dr. Reddy’s Laboratories
(RDY), and


Universal Carborundum
(CRBR.India).

Write to Ben Levisohn at [email protected]

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