I checked the websites of the Big 4 firms of accountants in Russia this morning. None of these firms (PWC, EY, Deloitte, KPMG, with links to their Russian sites in each case) provides any indication at all on their Russian websites that there is a war going on in Ukraine.
There are, instead, comments like this from Deloitte:
What is actually staggering is that this site still suggests that the Ukrainian and Russian practices are linked as if they serve a single organisation - the Russian Commonwealth of Independent States. That rings somewhat hollow.
I have a simple question for each of these firms this morning, and it is why are they still operating in Russia?
Asking this I am aware that each of them can make a claim like this from KPMG in Russia:
The ruse used is to claim that each national organisation within KPMG is supposedly independent of all others, linked only through their common membership of the KPMG global organisation. This is the same for all these firms. They can therefore seek to wriggle out of responsibility for this situation by claiming that they cannot control their Russian firm.
But as Deloitte shows, those Russian firms are claiming they are integrated members of the global entity, using its employment data amongst other things to indicate their scale. The link is very real in that case. And the option for expelling the Russian firm must exist for all these firms.
In that case these firms cannot deny their responsibility for the fact that right now they are providing audit, accountancy, taxation and advisory services to the state and private entities that are supporting the Russian war machine that is being used to commit war crimes in Ukraine.
So, the question is when will PWC, KPMG, Deloitte and EY expel their Russian member firms and break all ties with them? It is unacceptable that the Big 4 underpin the Russian economy in the way that they are doing now. The time for them to claim that their global approach demands this is well and truly over.
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This is the sort of duplicity the media should be making the public aware of – I hope this is on Twitter.
It’s on Facebook now.
Thanks
All clients of these firms need to ask them “are you doing business in Russia or with Russian entities”? If so, take your business elsewhere.
Indeed, shareholders of all companies need to ask management “are you planning to sack auditors/advisors if they still have Russian connections”? If not then take action commensurate with your position.
It’s not much, I grant you…… but it is something.
It is…..
Now on Twitter
PwC cares for its employees & its clients, and will not forsake them in their darkest hour.
Support for innocent victims- who happen to be in the wrong place, who are just as blameless as you and I, but who will suffer the consequences of the decisions of others for many years to come is just that – support of innocent victims.
Nothing more.
Place your blame where it lies & where it doesn’t hurt people with no choice in the matter.
Total nonsense
I am sure Apple also care and like many others have pulled out
All PWC have to do is end their franchise agreement with their Russian firm
Tell that to my Russian colleagues with children at home…
I don’t believe you are Russian
Many of these firms are simply members of an association and have NO legal links. (Professional Services 101). While the global firm does not have power to tell what the local firm to do it can simply throw them out of the club or take away their membership – many firms have done this with “rogue” local firms. But this would mean the firm that audited multinationals with Russian operations may not be able to audit those operations locally and this could mean the total accounts may have to be qualified. This could hurt companies like BP, Shell, Citibank.
Of course they have legal links – how else do you think they share a name?
And they are extremely close e.g. using common systems
There is a lot of trolling here right now
I am a PwC employee in Germany and I am utterly ashamed of PwC not to sever ties with PwC Russia. Have contacted Bob Moritz, Global Chairman. No answer.
They could do it, do not let them fool you with legal mumbo jumbo about separate legal entities. That’s the regular Risk Management talk in the firm. They did it with PwC Iran – Threw them off the PwC Network.
The PwC strategy is to condemn Russia in social media, set up some donation accounts for PwC employees to donate some bucks to Ukraine, set up some shitty „talk but do nothing“ task forces and publically argue that PwC obeys sanctions. But these EU US sanctions do not apply to PwC Russia. So they still work for Putinville/Russia including the Russian government. It is all about net revenues and client engagement marges. Blood Money if you ask me.
I was always rather proud of PwC. These days, when I think about PwC dirty tricks to still do business in Russia, I cannot eat as much as I wanna puke.
I post this, but have no way of knowing if it is true
i agree with you – i resigned from the firm as a result of numerous stupid management decisions (mainly relating to treatment of staff ie cutting their pay rises and bonuses whilst partners had a record profit year etc)
@Rich
I am not making this up but I understand that you are using a disclaimer.
Here is another interesting article:
https://www.goingconcern.com/ex-big-4-partner-why-big-4-firms-should-leave-russia/
I whole-heartedly agree with John there. Big 4s reputation is going to the dogs with each day of „just words of empathy but no action“.