Airbnb (ABNB) has built its wealth with a mission to “create a world where everyone can belong anywhere” through travel.
Russia’s invasion of Ukraine is forcing the company to reconsider this mission for at least one country, as Western brands face growing pressure to withdraw their business entirely from the region.
In an interview with Yahoo Finance Live, CEO Brian Cesky said the company was “actively researching” its footprint there as Western countries imposed crippling sanctions in response to the Kremlin’s military action against Ukraine.
“As a matter of practice, many of the sanctions that have already been imposed have been imposed on Russian banks, which has prevented many people from paying or receiving money,” Cesky said. “Our business is much more limited at the moment because of the sanctions. But all things are on the table. “
The White House and the EU have been quick to disconnect more than half a dozen Russian banks from the SWIFT payment system, a financial communications infrastructure that connects global banks, creating significant barriers to cross-border transactions. Credit and payment giants Visa and Mastercard have also moved separately to block Russian financial institutions from their networks.
In the immediate aftermath of the invasion, Airbnb announced it would offer free temporary housing to 100,000 Ukrainian refugees crossing into Europe. But the company has largely refrained from weighing its future in Russia.
“I want to make sure that every decision we make will be taken into account by all our stakeholders. “The impact we have on our guests, our hosts and communities around the world,” Cesky said. “That is why we are trying to have a very thorough process for these decisions. It’s like a triage situation, trying to be able to provide housing for 100,000 refugees, but we are absolutely discussing these issues. “
Europe remains the largest market for Airbnb outside the United States, accounting for approximately 35% of the EMEA region’s overnight stays and experiences, according to its latest 10K submission. Although the company does not distribute ads by country, the rapid search on the platform still lists hundreds of stays in major Russian cities, including Moscow and St. Petersburg.
US companies have been facing particular pressure on the services and content they offer Russia in recent days, with growing calls to phase out their presence altogether.
Earlier this week, Deputy Prime Minister of Ukraine Mikhail Fedorov publicly called on Apple CEO Tim Cook to stop its products and services for Russian consumers, which led the company to stop all sales of products in the country. Apple also withdrew state-owned media companies Sputnik and RT News from its App Store, while disabling Apple Pay’s services in the country.
This happened after Google (GOOG) on Alphabet deactivated its Google Maps traffic tools in the country and joined Facebook’s Meta Platforms (FB), blocking Russian state media from selling ads on their platforms.
While Airbnb is considering its next steps, Cesky said the company is closely monitoring the potential effects of the infection on travel in Europe, with the busy summer travel season remaining for only months. It is preparing for some disruption, with the EU home to 1.34 million Airbnb hosts.
“There is no doubt that in parts of Central and Eastern Europe there will be some restrictions on the types of people’s travel in the near future,” Cesky said. “I think our results [over the last two years] showed that regardless of the changing role, our business can adapt. We are a very adaptive model. So where there are fewer cross-border trips, we usually see an increase in domestic travel… I’m sure there will be some disruption… we will be prepared for changes in travel. “
Akiko Fujita is a presenter and reporter for Yahoo Finance. Follow her on Twitter @AkikoFujita
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