Disney and Sony have received 13.5 million pounds (about $17 million) in payments from a Russian joint venture after the invasion of Ukraine, despite the suspension of operations in the country. This is reported by the Telegraph , UNN.
Details
The Moscow-based Walt Disney Studios Sony Pictures Releasing (WDSSPR), responsible for marketing and distributing films in Russia produced by the two studios, paid £13.1 million in dividends in March 2022 to Eastern European Holdings (EEH), a month after Russia's invasion of Ukraine. According to an analysis of recently filed accounts, a further £440,000 was paid out between July and December 2023.
The funds were jointly owned by Disney and Sony's Columbia Pictures division based in London.
These dividends were received before the studios officially announced the termination of their activities in the Russian market. As noted, neither Disney nor Sony is no longer doing business in Russia, and there is no evidence that these companies have violated sanctions or acted improperly. However, the timing of these dividends raises a number of questions about the ethics of these Hollywood giants' actions. It is known that on March 10, 2022, Disney announced the suspension of all business operations in Russia after the outbreak of hostilities, and Sony followed suit the next day. Nevertheless, only a few days after that, in March 2022, the company received large payments from its Russian joint venture. A week after that, EEH received £13.1 million in dividends from WDSSPR, which were subsequently paid to Sony and Disney.
EEH was established by Disney and Sony in 2006 and was responsible for the release of such cartoons as Frozen and Spider-Man: Homecoming" in Russia. Disney and Sony decided to terminate the joint venture in June 2020, and dividends were paid in connection with the cessation of operations in the aggressor country.
Sony and Disney declined to comment on the situation.