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(Bloomberg) — China is “extremely concerned” about the harm to civilians in Ukraine, Foreign Minister Wang Yi told his Ukrainian counterpart in a call, in the latest indication of Beijing’s desire to prevent the war’s further escalation. 

Wang said the world’s second largest economy also “deplores the outbreak of conflict between Ukraine and Russia,” according to a statement posted on the Ministry of Foreign Affairs website. The remarks were published after a call between Wang and Ukrainian Foreign Minister Dmytro Kuleba, the most senior exchange since Russia’s Vladimir Putin launched the invasion Thursday.

Wang also acknowledged the conflict was a “war,” rather than a “special military operation” as described by Russia. Kuleba said Ukraine was willing to strengthen communication with China and that it looked forward to China’s “mediation for the realization of the ceasefire,” according to the statement. 

“This is a very important event and signals the very high attention that the Chinese government is paying to the Ukraine crisis,” said Henry Wang Huiyao, founder of the Center for China & Globalization policy research group in Beijing. “If both Ukraine and Russia invite China to be a mediator, then China would probably join.”

Ukraine Faces More Brutal Form of War as Russia Regroups

The war is testing Chinese President Xi Jinping’s commitment last month to a “no limits” relationship with Putin, as the U.S. and its allies pile on sanctions and press Beijing to take as stand against military aggression. In recent days, Xi has urged Putin to pursue negotiations and China’s United Nations ambassador abstained from, rather than opposing, a Security Council resolution condemning the attack. 

The call between Wang Yi and Kuleba came as convoys of Russian military vehicles bore down on the Ukrainian capital of Kyiv and other major cities, prompting warnings that Moscow could unleash a mass bombardment on population centers. 

Still, China has refrained from publicly calling for a ceasefire or describing the war as an “invasion,” and thus a violation of the UN-guaranteed sovereignty Beijing frequently vows to uphold. China hasn’t criticized Russia, and continues to voice support its security concerns and blame the U.S. for precipitating the crisis. 

China boasts deep economic ties with Ukraine, and Wang Yi expressed concern over the safety of Chinese citizens there, estimated at 6,000 when the invasion began. Beijing’s support is seen as essential to Moscow’s efforts to weather international sanctions, which are cutting if off from huge swaths of the world’s trade, finance and travel. 

Some 2,500 Chinese nationals have been relocated from Ukraine as of midday Wednesday, Foreign Ministry spokesman Wang Wenbin said at a regular press briefing in Beijing. He sidestepped a question on whether Xi would speak with Ukrainian President Volodymyr Zelenskiy, saying only that Beijing’s communication links with Kyiv were open.

China’s Muddled Ukraine Response Feeds Rare Domestic Debate

During the call, Wang Yi said China always upholds respect for sovereignty and territorial integrity of all countries, and called on Ukraine and Russia to “find a solution to the issue through negotiations,” according to the statement. China supports all constructive international effort conducive to “political settlement,” he added.

“As the war continues to expand, the top priority is to ease the situation to prevent the conflict from escalating or even getting out of control, especially to prevent harm to civilians, and to ensure the safe and timely access of humanitarian aid,” the Chinese foreign minister said. 

(Updates comments from China’s Foreign Ministry.)

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(Bloomberg) — Chinese food-delivery giant Meituan said it will cut commissions for some small and medium-sized merchants nearly two weeks after new government guidelines asked food-delivery platforms to lower fees for restaurants in pandemic-hit regions. 

Beijing-based Meituan will cut 50% of the technical service fee for small and medium-sized merchants in pandemic-affected areas whose daily average user transaction volume has dropped by more than 30%. It will also cap the technical service fee for each order at 1 yuan (16 U.S. cents) after the discount, according to a company statement issued late Tuesday.

Meituan has been grappling with regulatory and public scrutiny on multiple fronts, including its market power, the welfare of delivery riders and the size of commissions it charges restaurants, though the company has said its margins on take-outs are slim. The company has been among the targets of Beijing’s regulatory crackdown on the tech sector.

Shares of Meituan advanced as much as 4.9% in Hong Kong, with analysts saying the fee changes will have limited impact on its business. The rate cuts will be temporary and dynamic, rather than permanent reductions across the board as feared by some investors, Credit Suisse analyst Kenneth Fong said in a note.

Meituan will keep the lower fees until one month after the designation of the areas as medium and high risk is lifted. For merchants who face business difficulties in other regions, it will cap the technical service fee at 5% until the end of December. The company will also offer free services for some small restaurants to boost their capability to run online shops.

Rival Ele.me, owned by Alibaba Group Holding Co., followed suit by saying it will cut or waive commissions for merchants in areas hit by Covid for at least 15 days, committing 20 million yuan to the effort.

Since last May, Hong Kong-listed Meituan has rolled out pilot reforms to make its fees more transparent and so far the program has covered 70% of the merchants on the platform. Merchants have been able to see the breakdowns of Meituan’s cut. The Tencent Holdings Ltd.-backed company charges merchants a fee for its technology service and, for those who use its delivery services, a fee to cover rider costs based on order value, distance, and time of delivery. The rate varies wildly from 5% to over 20% of order value, according to research and interviews done by Bloomberg.

Separately, a Chinese top court on Wednesday outlined delivery companies’ responsibilities when it comes to consumer protection. For instance, delivery companies are required to inspect restaurants’ food sale qualifications and they will be held accountable for resolving disputes between food suppliers and customers from March 15, the court said.

(Updates with court’s comments in eighth paragraph)

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(Bloomberg) — President Joe Biden said that his top priority is controlling inflation, pitching elements of his stalled “Build Back Better” program as a means to temper the surge in prices that’s costing him support among voters.

“With all the bright spots in our economy, record job growth and higher wages, too many families are struggling to keep up with the bills. Inflation is robbing them of the gains they might otherwise feel,” Biden said his State of the Union address at the U.S. Capitol in Washington Tuesday evening. “I get it. That’s why my top priority is getting prices under control.”

The president pushed for cutting the prices for prescription drugs and childcare, along with reduced healthcare premiums, tax breaks for energy-efficiency improvements and electric vehicles, more affordable long-term care and more affordable housing. 

Biden also highlighted his demand for more competition in concentrated industries, and announced a “crackdown” on ocean carriers “overcharging American businesses and consumers.”

Even if enacted, much of Biden’s agenda would do little to address the immediate outlook for inflation, economists say. The president also underlined the “critical role” the Federal Reserve plays in reining in prices, and urged senators to confirm his nominees for the central bank’s board.

Biden began the economic section of his address by touting the U.S. economic recovery, the fastest among major advanced nations. He also highlighted the success of his $1.9 trillion American Rescue Plan in helping secure a rapid jobs recovery, as well as the passage of a bipartisan infrastructure bill that will “put us on a path to win the economic competition of the 21st Century that we face with the rest of the world –particularly with China.”

In a bid to address concerns emphasized by moderate Democrat Joe Manchin, who removed his support for Build Back Better in December, stalling the package in the 50-50 Senate, Biden said his proposals will lower the fiscal deficit.

“My plan will not only lower costs to give families a fair shot, it will lower the deficit,” he said. He reiterated his call for higher taxes on the wealthy and corporations, which were designed to pay for his longer-term economic agenda.

Turning to other legislative requests, Biden said he would “soon” send Congress a request for supplemental spending on free vaccines, treatments, tests and masks. 

And he urged lawmakers to pass legislation that would provide billions of dollars of assistance to U.S. manufacturing including semiconductors. The House and Senate have passed different versions of bills that are aimed at strengthening U.S. competitiveness against China, and are expected to take up talks on a compromise.

(Adds refernce to further desired legislation, in final two paragraphs.)

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(Bloomberg) — President Joe Biden delivered his first State of the Union address to Congress, set against the turmoil of Russia invading Ukraine, surging inflation, deadlock over his domestic legislative agenda, bitter political divisions in the country and lingering effects of the pandemic.

Biden said that Russian President Vladimir Putin thought he could divide the U.S. and its allies, but “Putin was wrong. We were ready.”

The president also unveiled a new economic plan after his “Build Back Better” package stalled in Congress. He called for measures that he said can boost U.S. manufacturing, urged confirmation of his five Federal Reserve nominees and hailed his Supreme Court pick, Judge Ketanji Brown Jackson.

Read more:

• Biden Says Putin Bet Wrong on Splitting Allies: ‘We Were Ready’
• Biden Says ‘Top Priority’ Is Getting Prices Under Control
• Summers Says ‘More Dangerous World’ Requires an FDR-Like Plan

Biden Calls for Legislation Protecting Abortion Rights

Biden urged Congress to protect a woman’s right to an abortion as the U.S. Supreme Court is set to rule this year on whether a Mississippi ban on the procedure after 15 weeks can remain.

During arguments Dec. 1, the court’s six conservatives all suggested they were likely to uphold the Mississippi ban. And five signaled they were interested in going further and eliminating the constitutional right to abortion altogether.

If the court overturns Roe v. Wade, 26 states either will or are likely to ban most abortions, according to the Guttmacher Institute, a research organization that backs abortion rights. About 12 have so-called trigger laws designed to automatically ban abortion if Roe v. Wade is overturned. — Jeff Green

Biden Pushes Stronger Laws to Protect Kids on Social Media

Biden said he supports efforts to strengthen privacy protections for kids online, including banning targeted advertising and data collection on children, as he hailed a Facebook whistle-blower.

“As Frances Haugen, who is here with us tonight, has shown, we must hold social media platforms accountable for the national experiment they’re conducting on our children for profit,” Biden said.

Haugen, a former Facebook employee whose disclosure of a trove of internal company documents prompted calls for regulations of social media companies, was a White House guest in the chamber. –Brody Ford 

Biden Touts Nominee Jackson, Salutes Breyer

Biden touted his nominee for the U.S. Supreme Court, Judge Ketanji Brown Jackson, as “a consensus-builder” who will continue the legacy of the retiring Justice Stephen Breyer.

Biden said Jackson, whose nomination he announced on Friday, has already received a “broad range of support,” including endorsements from the Fraternal Order of Police and judges appointed by Republicans as well as Democrats.

Breyer, who drew a big ovation when Biden thanked him for his service, was one of five justices at the event. Chief Justice John Roberts and Justices Elena Kagan, Brett Kavanaugh and Amy Coney Barrett also attended. –Greg Stohr

Biden Calls for Hiring Based on Skills, Not Degrees

Biden urged more companies to switch to skills-based hiring, rather than arbitrarily requiring a college degree.

Skills-based hiring is already the focus of the OneTen initiative, created in 2020 by former International Business Machines Corp. chief executive officer Ginni Rometty and former Merck & Co. CEO Ken Frazier. The coalition of more than 60 companies is working to get 1 million Black workers into jobs that don’t require 4-year college degrees and pay family-sustaining wages over a decade. –Jeff Green

Biden Says Pfizer Drug Will Be Available in Pharmacies

Biden said Americans will be able to get Pfizer Inc.’s antiviral Covid-19 treatment at a pharmacy immediately after testing positive.

Availability of the pill has been slowly increasing since it was cleared for use in December. Pfizer is working to deliver one million pills this month and more than two million next month, Biden said. –Josh Wingrove

Biden Calls for Vote on His Fed Nominees

Biden called on Senate Republicans to stop blocking a vote on his five nominees to the Federal Reserve.

“Confirm my nominees for the Federal Reserve, which plays a critical role in fighting inflation,” he said.

Senator Pat Toomey said in an interview Tuesday he intends to once again have Republicans boycott a committee vote planned for Wednesday because he hasn’t been satisfied about his questions about nominee Sarah Bloom Raskin’s role as a director at Colorado fintech firm Reserve Trust. –Jennifer Epstein

Biden Seeks Cut in Child-Care Costs

Biden called for cutting the cost of child care, which can amount to as much as $14,000 a year.

He proposes capping the costs at no more than 7% of a family’s income for most households. Those earning very little would pay nothing. His plan would provide for free preschool for all 3- and 4-year-olds.

Lack of child-care options has been a key reason many women left the workforce during the pandemic. Between February 2020 and February 2021, more than 2.3 million women left the workforce, bringing their participation rate to 57% — lower than at any time since 1988, according to the U.S. Bureau of Labor Statistics. –Jeff Green

Biden Silent on Use of Cryptocurrency to Bypass Sanctions

Biden’s speech makes no mention of Russia’s potential use of cryptocurrency, which has emerged as a flashpoint as high-profile individuals, including former Secretary of State Hillary Clinton, have raised concerns about the possible use of digital assets to bypass sanctions.

Bloomberg News previously reported that the White House’s National Security Council and Treasury Department have asked crypto exchanges to take steps to ensure their platforms aren’t being used as a workaround. The surging price of Bitcoin–up by more than 17% over the past three days–is fueling speculation that the tokens are offering an escape hatch for sanctioned individuals and entities. –Allyson Versprille

Biden Rebrands His Stalled Spending Package

Biden sought to rebrand his spending package, formerly known as “Build Back Better,” into a proposal he’s calling “Building a Better America.”

It’s pretty much the ideas he proposed before — only messaged as more about deficit reduction and reducing inflation. –Nancy Cook

Ukraine Gets 10 Minutes, Then On to the Economy

For all the discussion about how much the Russian invasion of Ukraine was going to change Tuesday’s speech, Biden spent less than 10 minutes talking about the conflict.

Then, he turned to the issue Americans care about most: the economic hardships caused by the Covid-19 pandemic. “We meet tonight in an America that has lived through two of the hardest years this nation has ever faced,” he said. “The pandemic has been punishing.”

From there, he moved on to laying out his first-year economic accomplishments, from plummeting unemployment to passing the American Rescue Plan and the Bipartisan Infrastructure Law. — Jennifer Epstein

Biden Pushes for His Climate Agenda

Biden cast climate change as an opportunity to build a better, stronger nation, drive economic growth and save money.

He extolled the investments unleashed by last year’s bipartisan infrastructure law as a chance to become more resilient in weathering the consequences of climate change while promoting environmental justice.

He also touted the promise for investments in clean energy — including tax credits for renewable power and electric vehicles — to cut families’ energy costs an average of $500 a year, Biden said. It’s a reference to a Rhodium Group analysis in October. –Jennifer Dlouhy

Biden Calls For People to Stop Working From Home

Biden said Americans need to return to their offices after working at home during the pandemic.

“It’s time for Americans to get back to work and fill our great downtowns again,” he said, according to prepared remarks. “People working from home can feel safe to begin to return to the office.”

The vast majority of federal workers will once again work in-person, he said. –Josh Wingrove

Biden Summons Ovation for Ukraine’s Ambassador

Biden drew standing ovations as he praised Ukranians’ efforts to fight Russia and when he thanked Oksana Markarova, the Ukranian ambassador to the U.S. for attending the speech.

“In this struggle as President Zelenskiy said in his speech to the European Parliament ‘Light will win over darkness,”’ Biden said, referring to Ukraine’s president Volodymyr Zelenskiy. “The Ukrainian ambassador to the United States is here tonight,” he said.

Markarova put her hand over her heart and mouthed “thank you” to the president. –Jennifer Epstein

 

Oil Traders Cast Gloom Over Biden’s Evening

Oil traders cast some gloom over the evening shortly before Biden spoken, sending crude futures up about 5%. Prices jumped 8% in regular trading in New York on Tuesday.

Oil prices are at seven-year highs as rigorous post-pandemic demand has far outpaced the flow of crude supplies into the market. Rising energy prices are a mounting political problem for Biden.

GOP Lawmaker Raised in Ukraine Escorts Biden After Criticizing

Among the contingent of lawmakers escorting Biden into the House chamber is an Indiana Republican who grew up in Ukraine. Representative Victoria Spartz earlier in the day gave an impassioned plea for strong action against Russia for invading Ukraine and had some biting criticism of Biden.

“I talk from my heart. This is not a war. This is a genocide of the Ukranian people by a crazy man,” Spartz said at a news conference. She said Biden must “act decisively fast or blood of many Ukrainians will be on his hand too.” — Joe Sobczyk

 

Commerce Secretary Skips Speech as Designated Survivor

Commerce Secretary Gina Raimondo isn’t at the Capitol for Biden’s State of the Union, taking the role known as designated survivor.

At least one Cabinet member always stays away to ensure continuity of government if a disaster occurs. — Jennifer Epstein and Jennifer Jacobs

U.S. Will Ban Russian Aircraft From Flying Through Its Airspace

Biden will announce in his speech that U.S. airspace is being closed to Russian airlines, joining most European nations and Canada in response to the invasion of Ukraine, according to two people familiar with the government’s decision. The people asked not to be named discussing the issue prior to the president’s announcement.

The action is largely symbolic since earlier airspace closings have made it very difficult for Russian aircraft to reach the U.S. from most locations. Canada blocked two Aeroflot flights attempting to return to Russia from the U.S. on Monday.

U.S. Stock Futures Edge Higher Ahead of Speech

U.S. stock futures nosed higher in the run-up to Biden’s speech, clawing back after a day in which the three major equity indexes finished solidly in the red.

S&P 500 futures rose 0.3% at 7:45 p.m. in New York.

 

A Show of Ukraine’s Colors to Be Mounted by Lawmakers

A large bipartisan group of lawmakers wore blue-and-yellow ribbons, the color of Ukraine’s flag, to show solidarity with the nation under attack by Russia, according to Representative Mike Quigley, a co-chair of the Congressional Ukraine Caucus. — Daniel Flatley

Lawmakers Test — and Four Find Covid

Just days after a mask requirement was dropped for lawmakers attending the State of the Union, four Democrats revealed they tested positive with breakthrough Covid cases.

Testing was required for lawmakers attending the speech, and so far it has led to four of them disclosing infection: Senator Alex Padilla of California and Representatives Jamie Raskin of Maryland, Suzan DelBene of Washington and Pete Aguilar of California.

House Speaker Nancy Pelosi, 81, said on MSNBC that she wouldn’t wear a mask during the Biden speech because she doesn’t have preexisting conditions or young, unvaccinated children at home.

Most lawmakers arrived for the speech maskless, as did Brian Monahan, the Capitol’s attending physician.

Lawmakers were assigned seats in the House chamber with empty ones in between for social distancing, requiring some to watch from the gallery or mezzanine, where outside guests are usually placed. — Eric Wasson and Billy House

GOP Pans Biden Even Before He Speaks 

Even before Biden makes his case, Republican lawmakers sought to blame him for the host of challenges facing the country and the world.

Leaders of the House Republican caucus, at a news conference earlier Tuesday, blamed the president for the Russian invasion of Ukraine, rising prices for gasoline, increased crime and an influx of migrants crossing the southern border with Mexico.

“Joe Biden and House Democrats are responsible for this state of the union in crisis,” House Republican Conference Chair Elise Stefanik of New York said. — Zach Cohen

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(Bloomberg) — Baidu Inc.’s shares surged in Hong Kong after its revenue and profit beat estimates, signaling the Chinese internet giant’s efforts to monetize artificial intelligence technology is paying off.

The stock gained as much as 9.3% in early trading on Wednesday following a 6.8% advance in its U.S. shares. Revenue for the December quarter rose a better-than-expected 9% to 33.1 billion yuan ($5.2 billion). Adjusted earnings per American depositary receipt came at 11.60 yuan, 25% above estimates.

China’s internet search leader is in the midst of a transition from an online marketing company to a hard-tech supplier in arenas from self-driving vehicles to the cloud and chips. The country’s weakening economy, coupled with Beijing’s crackdown on private sectors from education to property, has hammered Baidu’s core search-advertising division. That’s given extra importance to its efforts to commercialize AI tech.

Revenue from non-advertising businesses, including its cloud segment, surged 63% in the three months ended December, versus growth of just 1% in online marketing. Baidu’s AI cloud revenue rose 64% to 15.1 billion yuan for fiscal 2021, helped by clients in industries like transportation and energy, executives said on a conference call.

Baidu Gains on Revenue Beat; Recovery Seen on Track: Street Wrap

“Our new AI business has been growing at a pace faster than industry average,” founder Robin Li said on the call. “Despite the uncertainties caused by macro, by geopolitical tensions, and other factors, there is one thing for sure. That is, the world is moving towards AI.”

Baidu is planning to mass-produce its electric vehicles in 2023, with a prototype to be unveiled next month. It’s also testing a driverless ride-hailing service in big cities like Beijing and Guangzhou, while expanding a nascent chip business beyond just in-house applications. Those efforts coincide with President Xi Jinping’s call to make China self-sufficient in key technologies, at a time when his administration has grown weary of a decade of heady expansion in consumer internet.

While Baidu isn’t a major target of China’s tech crackdown, regulatory uncertainties as well as intensifying competition with online content hubs offered by the likes of Tencent Holdings Ltd. and ByteDance Ltd. could weaken the prospects for Baidu’s search-feed app and Netflix-style offshoot IQiyi Inc. In December, the streaming service raised subscription fees by up to 20% after user growth plateaued.

IQiyi reported little changed but better-than-expected revenue, and predicted it would reach breakeven on a non-GAAP operating income basis in fiscal 2022. Its U.S. shares jumped 21% on Tuesday, the biggest single-day advance since June 2020.

Baidu’s net income for the December quarter plunged to 1.7 billion yuan from 5.17 billion yuan a year earlier, affected by higher operating and development costs as well as a 891 million yuan impairment loss from long-term investments.

“The weakness in China’s economy has negative impacts on its short-term growth,” TH Capital analyst Tian X. Hou said in a note before Baidu’s results. “However, looking beyond the current quarter, we believe BIDU’s autonomous EV initiatives are likely to bring new growth and better valuation to the stock.”

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(Bloomberg) — Boeing Co. is suspending major operations in Moscow and temporarily restricting employees and partners in Russia from accessing sensitive technical data until it can secure export licenses from the U.S. government. 

The Chicago-based planemaker said in an email late Tuesday that it has suspended providing spare parts, maintenance and technical services to Russian customers as it navigates deteriorating relations between the U.S. and Russia.

Effective immediately, the company is now required to obtain U.S. export licenses before Russia-based workers can access “most technologies and data,” Sergey Kravchenko, the president of Boeing’s local operations said in a separate memo to employees viewed by Bloomberg News.

“Boeing needs to restrict access to any export-controlled data to Boeing and partner organizations’ engineering employees in Russia,” Kravchenko wrote in a Monday email.

The company said it will seek to find new assignments for some employees and also explore job rotations, business trips and possible days off for employees in Russia while it awaits the new licenses.

On Monday, Boeing said it had closed its office in Kyiv, Ukraine and “paused” operations at its Moscow training campus.

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(Bloomberg) — Sea Ltd., once the hottest stock in the world, has lost more than $130 billion in market value from its peak last year after a disappointing earnings report that added to its woes.

The Singapore-based company gave a muted forecast for its digital entertainment unit and its shares fell 13% in U.S. trading. That cut $11 billion from its market valuation, pushing its total decline to $132 billion from its high in October. 

Investors balked as the mobile gaming company forecast $2.9 billion to $3.1 billion in bookings at its digital gaming arm, set to be its first decline ever. That compares with last year’s bookings of $4.6 billion. 

Read more about Sea Ltd.’s earnings here.

The company had factored in a slowdown in online activity and unexpected government actions in India in its forecast, Yanjun Wang, Sea’s group chief corporate officer, said on a conference call on Tuesday night. 

“We are giving back some of the gains we made partially during Covid and with additional discounts to reflect the situation in India, which is highly unfortunate,” Wang said. “Given the uncertainty we are facing, it’s probably more art than science for us.”

Sea, which counts Tencent Holdings Ltd. as its biggest investor, faces increased regulatory scrutiny in India. Sea lost more than $16 billion of its value in its biggest daily drop after New Delhi abruptly banned its most popular mobile gaming title, underscoring the geopolitical challenges it faces in expanding its offering beyond Southeast Asia. 

While its digital entertainment booking outlook isn’t entirely unexpected due to slowing user growth and taking into consideration the negative impact from fast growth market India, the magnitude of the decline was still a shock, Citigroup Inc. analysts wrote in a note.

Sea Ltd. Sinks, Gaming Outlook Worse Than Expected: Street Wrap

The company sought to assuage investors by focusing on e-commerce revenue growth, which it expects to continue unabated as it focuses on key markets of Southeast Asia, Brazil and Taiwan. 

The Singapore-based company expects e-commerce sales, its main source of revenue, to rise to $8.9 billion to $9.1 billion in 2022 from $5.1 billion in 2021.

Sea is trying to cement its early success in Brazil, where it launched its online shopping business in 2019. Still, the company is facing competition from Latin American e-commerce giant MercadoLibre. Sea on Tuesday said its online shopping arm, Shopee, will pull out of France, a major market it entered just months before.

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(Bloomberg) — YouTube, Facebook, Instagram and TikTok are restricting state-owned Russian media channels ahead of a likely European Union ban, aiming to curtail propaganda during Russia’s invasion of Ukraine.

The EU announced a ban Sunday, which countries are expected to sign off on today after a formal proposal. In the meantime, YouTube owner Alphabet, Facebook owner Meta Platforms Inc. and TikTok owner Bytedance Ltd. have already restricted access to accounts run by Sputnik and Russia Today in the EU.

“We have received requests from a number of governments and the EU to take further steps in relation to Russian state controlled media,” Nick Clegg, Meta’s president of global affairs, wrote in a tweet. “Given the exceptional nature of the current situation, we will be restricting access to RT and Sputnik across the EU at this time. We will continue to work closely with governments on this issue.”

YouTube announced Tuesday morning that it would also block videos on the site, after previously restricting ads on the content. The ban is effective immediately but the company wrote that “It’ll take time for our systems to fully ramp up.”

Snap Inc., which owns Snapchat, said it has stopped all advertising running in Russia, Belarus and Ukraine. “We are halting advertising sales to all Russian and Belarusian entities and are complying with all sanctions targeting Russian businesses and individuals,” the company said. “We do not accept revenue from Russian state-owned entities.”

Roku Inc., the streaming-video platform, said Tuesday that it was removing RT from its channel store everywhere, including the U.S. Satellite service DirecTV announced a similar move earlier in the day. 

Russia’s invasion of Ukraine, which began Thursday, has prompted a growing number of governments to ask large technology companies to reduce or restrict their services in Russia. Poland and the Baltic states asked Big Tech companies on Sunday to “take a stand” against Russia. 

Companies will soon be forced to take down the content, after Thierry Breton, the EU’s internal market commissioner, said the EU’s ban on the state-backed media will include broadcasting or platforms sharing RT and Sputnik content. 

Poland and the Baltic states asked Big Tech companies on Sunday to “take a stand” against Russia by removing accounts from Russian and Belarusian governments and their leaders. As the government pressure mounted, Twitter Inc. added warning labels to links from Russian state media,

Read also: YouTube suspends ads from Russian state media

Microsoft also said it would take steps to reduce users’ exposure to Russian propaganda, including on MSN.com. 

“We are removing RT news apps from our Windows app store and further de-ranking these sites’ search results on Bing so that it will only return RT and Sputnik links when a user clearly intends to navigate to those pages,” the company said in a statement. The company will also be banning ads from RT and Sputnik.

(Updates with Roku and DirecTV in the sixth paragraph.)

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(Bloomberg) — DirecTV, one of the largest U.S. pay-TV providers, is pulling the Russian-government-controlled RT network from its service, citing that country’s invasion of Ukraine.

An agreement between DirecTV and RT was set to expire in the second half of 2022, but the invasion pushed the company to act sooner to end the arrangement, a spokesman said Tuesday. DirecTV is a joint venture between AT&T Inc. and the private equity giant TPG.

“In line with our previous agreement with RT America, we are accelerating this year’s contract expiration timeline and will no longer offer their programming effective immediately,” a DirecTV spokesman said in a statement.

DirecTV was joined by Roku Inc., which makes a popular set-top box used for streaming. A spokesperson said Tuesday RT will be removed from the Roku Channel Store worldwide, including the U.S.

RT has been losing reach on TV for a few years now. Comcast Corp. and Charter Communications Inc. both dropped RT a few years ago. RT also disappeared in the Washington D.C. area in 2018 after a public broadcast station that carried its programming went off the air.

In January, DirecTV dropped conservative channel One America News Network after public criticism for spreading misinformation 

(Updates with Roku comment in fourth paragraph.)

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(Bloomberg) — Russia’s invasion of Ukraine last week brought global condemnation, trade restrictions and financial penalties. Now the nation of 145 million is losing many of the world’s most iconic brands. 

Apple Inc. and Nike Inc. both announced plans Tuesday to halt product sales in Russia, cutting off the country to the most valuable technology company and the biggest maker of athleticwear. That followed Hollywood studios such as Walt Disney Co. and WarnerMedia pausing releases of new films in the nation — including “The Batman,” which is hitting U.S. theaters this weekend and expected to become one of the highest-grossing movies of the year. 

Taken together, the moves reflect a cultural and commercial split unseen since the Cold War ended in the late 1980s. From the iPhone to Air Jordans, highly prized U.S. brands are vanishing from the Russian marketplace in a way that will be hard for consumers to ignore.

Exxon Mobil Corp. continued the exodus on Tuesday, saying it will “discontinue” its Sakhalin-1 operations in Russia. Energy was specifically excluded from initial sanctions announced last week by the U.S. and Europe, but pressure has been growing to cut ties.

In Apple’s case, the move follows a recent expansion in Russia. The company had registered a business office there in the past few months and posted job listings for about half a dozen positions in Moscow. But President Vladimir Putin’s aggression in Ukraine brought a quick policy shift. In addition to ceasing product sales in the country, Apple is removing the RT News and Sputnik News applications from App Stores outside of Russia.

“We are deeply concerned about the Russian invasion of Ukraine,” Apple said Tuesday. “We are supporting humanitarian efforts, providing aid for the unfolding refugee crisis, and doing all we can to support our teams in the region.”

Around the same time, Nike said it would be cutting off Russia as well, though it blamed logistics. The athleticwear giant said it “cannot guarantee delivery of goods to customers in Russia.” Nike didn’t immediately respond to a request for comment. 

United Airlines Holdings Inc., meanwhile, pledged Tuesday to stop flying over Russia for its daily flights to India, making it the last major U.S. passenger airline to withdraw from the airspace.

American Airlines Group Inc. and Delta Air Lines Inc. already said they stopped flying over Russia, shifting routes linking U.S. cities to destinations such as Tokyo and Incheon, South Korea.

Beyond concerns about the invasion, operating in Russia has become very challenging for outside companies. With sanctions mounting, the ruble plunging and the U.S. banning transactions with the Russian central bank, deciding to pull out of the country has become an easier choice. 

And it’s not just U.S. brands leaving. BP Plc said this week that it would exit its 20% stake in Russia-controlled Rosneft, a move that could result in a $25 billion write-off and cut its global oil and gas production by a third. Shell Plc followed suit, citing Russia’s “senseless act of military aggression.” DaimlerTruck Holding AG, one of the world’s largest commercial vehicle manufacturers, also is halting its business activities in the country. 

But losing Apple was seen as a particular blow for Russia. When Ukraine Vice Prime Minister Mykhailo Fedorov urged the company to stop sales in the country, he said it could turn Russia’s young people against the war.

He also called on Apple to shutter its local App Store — a step the company hasn’t yet taken. Apple has operated an online store specific to Russia for the last several years, as well as an App Store tailored to the country.

HP Inc., the largest supplier of personal computers to Russia, also stopped exports to the country this week. Ford Motor Co. joined the pullout as well, saying Tuesday that it was “deeply concerned about the invasion.”

The war itself may be entering a new phase. Early signs suggest Russian commanders are preparing to redouble attacks against Ukraine’s capital, Kyiv, after initial lightning strikes failed to make headway.

Apple said it will continue to evaluate the situation and that the company is in communication with governments on the actions that it’s taking. “We join all those around the world who are calling for peace,” the company said.

(Updates with Exxon in fourth paragraph.)

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