Pariah Status Starts to Exact a Financial Toll on Russia

Doing any kind of business with Russia, its companies or its oligarchs is now tainted by the invasion of Ukraine — and the deterrent of not wanting to be associated with a pariah nation may prove as effective in bringing Vladimir Putin to heel as the sanctions piling up. While there are always routes around poorly drafted and rushed new restrictions, the fear of being held to account in the court of popular opinion may be the disinfecting sunlight that really does get into all the corners.

Companies and institutions will need to accept financial pain as the price of taking concrete action to punish Russia. But that may prove cheaper than seeing their brands and reputations blackened by association with Putin’s invasion, and possibly being punished with penalties by regulators down the line.