DoTerra, Young Living is still doing business in Russia, says the Yale report

Two Utah-based providers of essential oils were named in a recent Yale report listing companies still operating in Russia despite the brutal invasion of Ukraine that has left thousands dead and 10 million displaced.

DoTerra received an “F” rating in the report among 38 companies “just continuing business-as-usual in Russia.”

And Young Living received a “D” rating for “postponing future planned investment / development / marketing while continuing significant business.” There are 68 other companies in that category.

The report includes nearly 500 companies, some as completely closed factories and offices, some that have not made any changes in operations in Russia, and hundreds in between. The Yale research team updated the list Friday.

However, DoTerra disputes the claim.

The essential oil company is listed in the “dig in” category, meaning it has not only chosen to stay in Russia, but has defied “demands for withdrawal or reduction of activities,” say researchers.

Other companies in the category include Koch Industries, Huawei, Emirates Airlines and Lenovo.

But in an email, the company pushed back on the categorization and told Deseret News that it curtailed its Russian activities by restricting imports, suspending exports, stopping marketing efforts and canceling or suspending planned investments.

DoTerra says it notified Yale of the adjustments and asked to be removed from the list, “but they have been silent and unresponsive.”

The company’s current commitment to Russia “is very limited to members of our community who have come to rely on doTerra products for their well-being,” a spokesman said. “We are focused on people and continue to help them as we scale our business back to areas that are essential.”

Based in Pleasant Grove, doTerra also pointed to the nearly $ 700,000 it donated to support Ukrainian refugees, targeting “emergency food and supplies, temporary housing and long-term needs.”

Meanwhile, Young Living said in a statement that its “primary concern has been and will continue to be for the safety and well-being of our employees, fire partners and customers in Ukraine and Russia.”

“We condemn the heinous violence we are witnessing and have suspended significant operations and new business investments in Russia, while dedicating large resources to Ukraine’s emergency aid,” the company said.

According to a press release on March 22, Young Living suspended “capital investment, opening of regional offices, marketing activities, offline training and all events” in Russia. It also canceled a Russian convention and exhibition scheduled for August.

Young Living did not elaborate on the scope of current business operations in Russia. A verified Instagram account titled “@younglivingrussiayl” was still active, posting pictures of products from Friday morning.

The company does business around the world, according to its website, although its global headquarters are in Lehi.

The company with essential oils was also recently named in a petition calling for a boycott, accusing it of trying to “take advantage of the potential market share gain that all the companies currently leaving Russia have.”

‘Put pain on the economy’

Russia’s invasion of Ukraine on February 24 triggered a mass exodus of hundreds of international companies.

The list includes major airlines such as Delta, United and American, energy giants such as Exxon, British Petroleum and Shell, technology and entertainment companies such as Spotify, Ebay and Netflix – even sports organizations such as FIFA.

The Biden administration also imposed sanctions on Russia, including bans on Russian flights, exports of luxury goods and military equipment. Sanctions against the Russian central bank froze hundreds of billions of dollars of assets.

And on Thursday, the US Treasury Department introduced new sanctions against technology companies, which it says Russia uses to shield itself from the current sanctions imposed on the central bank and other financial institutions.

“These voluntary business blockades, matched by government sanctions … have worked to help curb this economy, if not bring it to a complete standstill,” Jeffrey Sonnenfeld of the Yale School of Management told PBS News Hours Amna Nawaz.

Sonnenfeld is the pointman on Yale’s ongoing report on companies still in Russia. In another interview with CNBC, he blew up the idea that companies only harm innocent Russian employees by cutting ties.

“Employment? The idea of ‚Äč‚Äčthese sanctions is to put pain on the economy,” he said. “We are not trying to figure out how we can advance the Russian economy right now. It is for the general population to feel enough distress that the economy is failing and the government is failing. “

A poll conducted by Morning Consult in March showed that 75% of American adults support companies that stop their business relations and cut ties with Russia, while 74% want to see companies close Russian factories and offices.

Yale’s report was compiled from public sources such as “government legislation, corporate statements, financial analyst reports, Bloomberg, FactSet, S&P Capital IQ and Thomson Reuters, as well as non-public sources, including a large network of business insiders, whistleblowers and executives. Contacts, in addition to Russian-speaking sources. ”

Leave a Comment