Disney, Sony Film Studios Receive £13.5 Million From Russian Businesses During Russia's War in Ukraine

Disney and Sony film studios have received £13.5 million from a joint venture in Russia since the start of the war in Ukraine, The Telegraph reports.

Despite ceasing operations in Russia, Disney and Sony studios have received payments totalling £13.5 million from a Moscow-based joint venture that marketed and distributed their films in the country.

The Moscow-based Walt Disney Studios Sony Pictures Releasing (WDSSPR) paid dividends of £13.1 million in March 2022, a month after Russia's invasion of Ukraine, and another £440,000 between July and December 2023, according to recent reports.  

These funds were transferred to Eastern European Holdings (EEH), a London-based company owned by Disney and a unit of Columbia Pictures (Sony).

Although Disney and Sony announced the suspension of their operations in Russia in March 2022, the payments are related to business conducted prior to that. The companies did not violate sanctions or other legal restrictions.  

However, the timing of the payments raises uncomfortable questions. Disney announced the termination of its operations in Russia on 10 March 2022, and Sony did so the next day. A week later, EEH received £13.1 million in dividends from WDSSPR, which were split between Disney and Sony.  

Many Western companies are facing difficulties withdrawing from Russia. The Kremlin is forcing them to sell their assets at a reduced value. For example, Carlsberg's management said that their Russian business was actually ‘stolen’ by local authorities.  

Sony and Disney refused to comment on the situation.

In addition, it is known that Disney and Sony studios have refused to dub films into Russian and show them in Russian cinemas. At the same time, the latter do not disdain to show the films without paying royalties in violation of copyright, as was the case with the film Barbie.