3 blue chip stocks planning to cut ties with Russia

More and more corporations are pulling out of Russia, including household brands like Coke, Pepsi, McDonalds, Starbucks and PayPal.

More broadly speaking, ASX-listed companies have very limited ties to Russia. Here are three large cap names

Aristocrat's $1.8bn gaming division

Aristocrat (ASX: ALL) has approximately 1,000 staff working (circa 15% of global workforce) within the company’s Pixel United division in Ukraine.

On Wednesday, the Aristocrat said it has assisted over two-thirds of its Ukraine-based employees with relocation and the crisis should not have a material impact on earnings.

Aristocrat noted that revenue sources from Russia was no longer viable and confirmed its plans to suspend Russian mobile games - which represent approximately 3% of Pixel United earnings.

Aristocrat shares have declined almost -8% since Russia's invasion on 24 February.

UBS maintained a Buy rating with a $49 target price on Thursday, reiterating the resilient nature of gaming revenues.

Another ethical concern for Rio Tinto

Rio Tinto (ASX: RIO) has two two direct ties with Russia:

• The Mongolia-based Oyu Tolgoi copper mine is dependent on Russian fuels 

• The Queensland Alumina business is 20% owned by Russian aluminium giant, Rusal 

Oyu Tolgoi is an important piece in Rio Tinto's long-term growth prospects, expected to emerge as the fourth-largest copper project in the world by 2023.

At present, Oyu Tolgoi contributed $893m in net profit for the full-year ended 31 December, or approximately 4% of Group earnings.

“While Rio has begun looking for alternative fuel sources for Oyu Tolgoi, the company does not believe it can stop buying from Russia altogether,” said Rio Tinto’s Copper Chief Executive, Bold Baatar, the Australian Financial Review reported. 

Will Rio Tinto do the right thing or go down its historic path of unethical conduct?

Worley exits Russia

Worley (ASX: WOR) said it has begun the safe withdrawal of its services provided in and into Russia on Thursday. The exit is not expected to have a material impact on earnings.

Worley shares have been on a slow and steady grind higher on the back of elevated oil prices.

Brokers remain mixed on the stock's outlook, with a consensus price target of $12.72.