Israeli Tech Firms Pulling Out of Russia

A number of Israeli tech firms have suspended or shut down their commercial operations in Russia to protest its invasion of Ukraine, The Times of Israel reported on Sunday.

Among the Israeli companies joining many others from abroad in the sanctions were: Fiverr, which connects businesses with freelancers offering digital services and products; web creator Wix, which employs nearly 1,000 Ukrainian developers; Payoneer, a payment processing firm; and fintech firm Tipalti.

Fiverr co-founder and CEO Micha Kaufman said in a post that the “devastation in Ukraine requires action” and that the prosperous company—publicly traded on the New York Stock Exchange with a market cap of about $2.3 billion—would be “suspending its business in Russia.”

The company has allowed Russian freelancers to withdraw their earnings and has worked to support its Ukrainian freelancers and workers, Kaufman said.

As of Sunday, over 350 companies, including tech firms, major manufacturers and consumer brands have either suspended or closed down offices in Russia or have scaled down their services in order to pressure the Kremlin over the war, according to data from a team of researchers at Yale University. The list includes Visa, Apple, Facebook, Mastercard, Amazon, Google, Ford, Dell, DHL, and McDonald’s, as well as many luxury brands.

In Israel, the government has refrained from imposing sanctions on Russia and mostly avoided direct criticism of the invasion, as it seeks to balance its ties with both Kyiv and Moscow. The country has also taken no action against Russian oligarchs with assets in Israel.

The Ministry of Economy and Industry held a webinar last week for companies that do business in to help them stay abreast of regulatory changes and how they may be affected.

The U.S. government, meanwhile, has warned Israel against taking in “dirty money” from Russia or its oligarchs urged that it join Western sanctions against Moscow.

Under Secretary of State Victoria Nuland, told Israel’s Channel 12 news:

“What we are asking among other things is for every democracy around the world to join us in the financial and export control sanctions that we have put on Putin. We have to squeeze the regime, we have to deny it the income that it needs,” Nuland said.

“We squeeze the oligarchs around him, we squeeze its economy. So in that context, we’re asking as many countries as we can to join us. We’re asking that of Israel as well,” she said.