Five of the world’s biggest property consultancies have severed ties with their Russian partners as the situation in Ukraine continues to deteriorate.
Property Week can reveal that Avison Young has “suspended” its business in Russia. Meanwhile, CBRE and Colliers both confirmed this week they have suspended at least some of their Russian operations. The three agencies join Savills and Knight Frank who Property Week revealed had cut ties with Russia late last week.
A spokesperson for Avison Young told Property Week: “Our footprint in Russia is small – a single affiliate partner. We have suspended our operating agreement with the firm out of an abundance of caution, not as a reflection on the valued team in place there.”
CBRE today announced a decision to discontinue “most of its business in Russia” in response to its “horrific attack” on Ukraine.
“The company has begun the process of exiting its office in Moscow, which provides leasing, investment, property management and valuation services, and terminating two existing affiliate relationships in the country,” it said.
“Consistent with its contractual obligations, CBRE will continue to manage facilities and provide other essential services for existing multi-national clients that are operating in Russia.”
Colliers said yesterday that it fully supported “all appropriate sanctions enacted by the international community” and added that “in response to the gravity of Russia’s aggression, Colliers has discontinued its business in Russia and Belarus, effective immediately, after more than 28 years of operations”.
“We thank our former colleagues and partners for their work over the years and wish them well as they navigate the future,” it said.
On Friday, Savills confirmed that the agreement with its ‘associate’ business in Russia, which is contracted on a franchisee model, had been suspended.
According to a spokesperson, Savills does not own nor have a shareholding in a business in Russia. Rather, “business in Russia is undertaken by a Savills associate (a franchisee), with which Savills has a very long-standing relationship,” they said. “This agreement has been suspended.”
The spokesperson added: “Savills is appalled by the scenes of humanitarian tragedy which are unfolding across Ukraine, has already made significant donations to humanitarian relief agencies working in the Ukraine and neighbouring countries to help alleviate this suffering and is supporting those of its people who are personally affected.
“Savills has a long standing zero tolerance for dealing with sanctioned parties and does not engage in business with designated sanctioned entities or persons.”
Knight Frank made a similar move on Friday with the decision to cut links to its Russian partner.
“With immediate effect, and with their agreement, we have suspended the commercial arrangements with our independent licensee in Russia,” said a spokesperson, who declined to provide further details.