Accountants EY and Deloitte break ties with Russia; Russia and Ukraine war

Deloitte and EY will sever ties with Russia, they said on Monday, echoing moves by fellow Big Four accounting and consultancy firms KPMG and PwC.

The Big Four audit the books of a list of blue-chip companies and their work is often critical to businesses seeking international investor support.

“The EY global organization will no longer serve any Russian government customers, state-owned enterprises or approved entities and individuals anywhere in the world,” EY said in a statement, citing Russia’s military invasion of Ukraine.

“EY has initiated the restructuring of its Russian member firm to separate it from the global network.”

Deloitte did a review last week and said it would no longer operate in Russia and Belarus.

“We will separate our practice in Russia and Belarus from a global network of member firms. Deloitte will no longer operate in Russia and Belarus,” the company’s global CEO Punit Renzen said in a statement.

Deloitte has 3,000 employees in Russia and Belarus.

Grant Thornton, in the next tier of accounting and consulting firms, announced on March 1 that Russian member firm FBK was leaving its network with immediate effect.

EY said it has more than 4,700 employees in Russia, which has been part of its global network for more than 30 years. EY said it is helping 700 employees in Ukraine with financial aid, relocation, transportation and immigration services.

KPMG said on Sunday that its companies in Russia and Belarus would leave the KPMG network, affecting 4,500 partners and employees. Meanwhile, PwC also announced that PwC Russia will be leaving its network, affecting 3,700 partners and employees.