FedEx, UPS halt deliveries in Russia, citing war with Ukraine

MoneyWatch: Sanctions slam Russian economy

U.S.-based corporations with operations in Russia are halting local services in retaliation against President Vladimir Putin’s invasion of Ukraine. 

FedEx and UPS, two of the largest shipping companies in the world, have both stopped sending shipments to Russia, effective immediately. The shippers have also announced the suspension of both inbound and outbound package deliveries in Ukraine, citing a need to prioritize the safety of their employees there. 

FedEx over the weekend said in a statement on its website that the company is “closely monitoring the situation” and that it has “contingency plans in place, including temporarily suspending inbound and outbound services to Ukraine and inbound service to Russia until further notice.” 

A FedEx spokesperson told CBS MoneyWatch that the shipper continues “to provide domestic and export service in Russia where conditions allow.”

UPS also announced service disruptions due to Russia’s invasion of Ukraine. On Thursday, UPS suspended all shipping services to, from and within Ukraine. The following day, the shipper said it won’t be delivering international packages with destination addresses in Russia. UPS also said it would return undeliverable packages to their senders when possible. 

“Our focus is on the safety of our people, providing continued service and minimizing disruption to our customers. UPS continues to closely monitor the situation and will re-establish service as soon as it is practical and safe to do so,” UPS said in a statement on its website. 

Delta halts alliance with Aeroflot

The aviation industry is responding to the Russia-Ukraine crisis as well. Delta Air Lines, one of the largest U.S. carriers, on Friday announced the suspension of its “codeshare services” with Russia’s Aeroflot, meaning the two airlines will no longer co-operate flights. 

Previously, the arrangement allowed Delta to sell tickets to Aeroflot-operated flights to Russia and market them as their own. The arrangement similarly allowed Aeroflot to sell tickets on Delta-operated flights. Delta does not operate any flights to Ukraine or Russia on its own.

“We have removed our code from Aeroflot-operated services beyond Moscow’s Sheremetyevo Airport and removed Aeroflot’s code from Delta-operated services from Los Angeles and New York-JFK [airport]. Accommodations will be made for customers affected by these changes,” Delta said in a statement. 

Aeroflot did not immediately reply to CBS MoneyWatch’s request for comment. 

In another blow to the Russian carrier, British soccer club Manchester United said it recently ended its sponsorship deal with Aeroflot over Russia’s attack on Ukraine, according to a statement on its website. 

“In light of events in Ukraine, we have withdrawn Aeroflot’s sponsorship rights,” the Premier League team said in a statement. “We share the concerns of our fans around the world and extend our sympathies to those affected.”

Oil companies Shell and BP have also dropped Russia ventures in protest of its attack on Ukraine, putting pressure on competitors to ditch their own stakes in Russian firms.

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