Magna changes mind and halts six Russian factories. Live Ukraine updates

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Russia’s invasion of Ukraine has sparked unprecedented economic and financial retaliation from western nations which are piling on sanctions in what France has called “all-out economic and financial war.”

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But the conflict will have consequences for the whole world as it cuts off crucial energy and crop supplies, disrupts businesses and upsets financial markets, already under stress as central banks tighten policy.

There is a lot going on out there so check here for the latest news on how the conflict is affecting markets, businesses and the economy.

10:08 a.m.

No more Ski-Doos for Russia

Another flag carrier from Corporate Canada has decided to quit Russia. Bombardier Recreational Products Inc., the Valcourt, Que.-based maker of Ski-Doo snowmobiles and Sea-Doo personal watercraft, has decided to stop exporting to Russia, which accounts for about five per cent of the company’s sales.

“As always, BRP’s priority is to care for our employees, our dealers, and our valued customers,” a spokesperson said by email. “In the past few weeks and days, we have been monitoring the situation in Eastern Europe very closely. Given the instability of the current situation and the trade complexities, we are pausing our product exports to Russia.”

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BRP has been in Russia for three decades and was at one time the company’s third-biggest market. The international sanctions that followed Russia’s annexation of Crimea in 2014 have significantly reduced BRP’s sales in the country, however. BRP currently has an office in Saint Petersburg that oversees about 100 dealerships.

— Kevin Carmichael

9:37 a.m.

Maersk stops rail shipments between Europe and China

A.P. Moeller-Maersk A/S, the Cophenhagen-based shipping giant, advised its clients this morning that it has temporarily suspended all intercontinental rail shipments — east and west — between Asia and Europe, “without exception.”

Maersk is known primarily for its ships. But it also offers land- and air-based options. Among other things, Maerk’s website lists a “block train” option that allows customers to book a train of their own to move goods between China and Europe. Alas, the tracks run through Russia.

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The decision reinforces warnings that the war in Eastern Europe will have a ripple effect on shipping costs around the world.

“If you have cargo currently in transit or have completed a booking before this suspension was announced, we will do our utmost to get it delivered to its intended destination across the normal routes,” Maers said in a customer advisory. “The latest sanctions also mean Maersk has suspended all new air bookings to and from Russia and Ukraine until further notice. We do see a potential risk to the cost of air transportation, as airspace gets restricted and flights are further subject to rising fuel and insurance costs.”

Maersk also advised its customers that it had decided to limit its dealings with Belarus, in part because of sanctions visited on Russia’s ally in its invasion of Ukraine, and partly for moral reasons.

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“For Belarus, going forward, only bookings for foodstuff, medicines, and humanitarian supplies (except dual use) will be accepted after extensive screening,” the company said. “This exemption is to underline that Maersk is focusing on social responsibility and making the efforts to support society despite the complications and uncertainties within the current supply chain.”

— Kevin Carmichael

9:32 a.m.

North American stocks are in the red this morning as concerns over the intensifying conflict in Ukraine overshadowed data that showed an acceleration in U.S. jobs growth last month.

The Dow Jones Industrial Average fell 139.23 points, or 0.41 per cent, at the open to 33,655.43.

The S&P 500 opened lower by 21.37 points, or 0.49 per cent, at 4,342.12, while the Nasdaq Composite dropped 82.71 points, or 0.61 per cent, to 13,455.23 at the opening bell.

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The TSX composite index was down 42.34 points, or 0.2 per cent, at 21,208.07.

8:30 a.m.

Magna International Inc., Canada’s biggest maker of automobile parts, has changed its mind about trying to hang on in Russia.

As other multi-nationals headed for the exits, the Aurora, Ont.-based company said on March 1 that it planned to keep its six factories open, and its 2,500 Russian employees working. That stance lasted about two days.

“Like most in the international community, we remain deeply concerned with the very unfortunate situation in Ukraine,” Tracy Fuerst, vice-president of corporate communications and public relations, said in an email. “Given current conditions, Magna is idling its Russian operations.”

Magna will make a “significant” donation to the UN Refugee Agency and will match any donations that its workers make towards the “well-being and safety” of Ukrainians.

“Although we don’t have facilities in Ukraine, we have the privilege of working with thousands of Ukrainian colleagues in our Magna operations around the world as well as those from Russia who share the same values of human rights, diversity and inclusion,” Fuerst said.

— Kevin Carmichael

Additional reporting by Reuters, Bloomberg