The moral dilemma facing Britons on Russian boards

theguardian.com:

The Order of Friendship of the Russian Federation is a star-shaped golden medal, encrusted with blue enamel, showing a map of the world. Last year, as Russia was beginning to ration supplies of gas to Europe and Vladimir Putin was planning his assault on Ukraine, Roger Munnings announced he had been named as the medal’s latest recipient. The former long-serving head of KPMG’s Russian operations, Munnings is a director of three firms of major strategic importance Putin’s regime: Lukoil, Nornickel and the banking to telecoms conglomerate Sistema.

Munnings is a busy man. As well as his three directorships – which pay out an estimated $707,000 a year combined, according to company filings – he also heads the Russo-British Chamber of Commerce, which promotes closer ties between the two countries. Now, these ties are fast unravelling as western governments tighten sanctions on Moscow and businesses cut all dealings with Russia.

Scores of directors have relinquished roles in the 35 Russian firms suspended from the London Stock Exchange last week, and there have been departures from a clutch of other Russian controlled companies with their main listings in the UK capital. The exodus began after the Institute of Directors urged Britons to uphold their “moral duty”, with the clarion call: leave now.

While many have heeded the call, Munnings, who lived in Russia for more than a decade, is staying put. He did not respond to requests to comment on his decision.

Outrage over the war in Ukraine has forced a moral dilemma on companies and left time-honoured governance mechanisms in shreds. Several boards face the potential problem of not having sufficient numbers left to make decisions in the proper way.

The momentum driving the departures