Ever since the era of the Cold War, when automakers such as Renault of France and Fiat of Italy entered the Soviet Union market, Russia has represented an unexplored frontier market and at the same time a market with country risks — the risk of companies suffering business damage due to changes in political, economic and social situations in a certain country or region.

After Russia invaded Ukraine on Feb. 24, many Western firms withdrew from Russia, stopping production in or trading with the country. One of the factors behind such decisions is reputational risk — consumers and shareholders in their home countries criticizing the companies for continuing business in Russia, making it difficult for them to stay in the country.

Today, a time when both country risks and reputational risk have combined and emerged simultaneously, is it no longer possible for multinational companies to do business freely and globally?