New York, USA – Global advertising company The Interpublic Group of Companies (IPG) is the latest advertising company that has announced its exit from the Russian market following the Ukrainian crisis caused by Russian invasion.
In a public letter posted by its CEO Philippe Krakowsky on LinkedIn, he stated that they immediately applied all international sanctions and informed clients in Russia who are prohibited parties that they would no longer continue working with them. Krakowsky also added that since IPG never owned a media business in Russia, they did not have significant concerns that their media buying was either fueling the local economy, or funding media being used by the state.
“As you know, we are first and foremost a company that always strives to live up to our values. We believe in speaking up against oppression, whether that has to do with issues of race, or on behalf of other marginalised communities, and speaking up on behalf of democratic principles. We’re committed to initiatives that support sustainability. And we have always been clear that we value and stand by our people and their well-being,” he said.
The Interpublic Group of Companies is composed of five major networks namely FCB, IPG Mediabrands, McCann Worldgroup, MullenLowe Group, and Marketing Specialists.
Krakowsky also added that they will leave their Russian team, approximately around 200 of them, with enough capital on their balance sheet to pay their people for a minimum of six months.
He further said that they will also be engaging with the team in the coming weeks, as they cede control of all aspects of management and operations to the local leadership team, in order to ensure continuity for any non-Russian clients who remain active in the market.
“We have always been clear that we value and stand by our people and their well-being. That’s core to our culture, since the nature of our business requires that we have the industry’s best talent – and that we each act as part of an interconnected global network, showing up for each other and working together for the common good,” Krakowsky said.
IPG is the latest advertising group to exit the Russian market after WPP previously announced that it will be discontinuing its work in Russia. Outcry in the advertising industry has been rampant regarding the crisis, including a statement from the renowned award-giving event Cannes Lions, which said that it has banned Russian entries and delegates for this year’s awards ceremony.
