In late February 2022, Russia began its unprovoked and unjustified full-scale invasion of Ukraine, leading to the country being sanctioned by the US, the United Nations and other countries. On Thursday, March 2, 2022, one medical technology firm based in the US, Conformis suspended all its distribution operations and business development in Russia amid the Ukraine crisis. In addition to this suspension, they announced that they will not be pursuing any future business opportunities in Russia until further notice. Conformis and many other companies are beginning to halt business in Russia considering the current crisis. These sanctions, as companies begin to pull out of the Russian market, will inevitably have a large impact on the global market.
According to the GlobalData Sentiment Analyses, there has been an increase in the number of mentions of Conformis on the news. About half of these were of positive sentiment, the other half were of neutral sentiment and all of the new mentions were categorised as geopolitically themed.
The Medical Devices sector in Russia will be negatively impacted by the Russo-Ukrainian War, as a result of worsening financial sanctions, as most medical devices are imported from the US and Europe. There is also a social impact surrounding the financial decisions of halting business with Russia. According to the GlobalData analyses, the decisions made by Conformis has led to a positive reaction by the media; whereas Coca-cola, who continue business in Russia, has received a lot of criticism for their decision and has even led to sellers to take their products off the shelf.
However, these decisions seem to be more politically driven rather than financially driven, as little impact is expected from the loss of exported Russian medical devices as these account for less than 0.04% by value of all medical devices sold globally, according to GlobalData.