Photo: Britannica
Nike, one of the world’s most popular brands and a household name in many countries, has announced that they are exiting Russia. This comes after Moscow attacked Ukraine earlier this year, causing Western companies to withdraw from the country.
The American company was ordered to stop its online orders and close down stores in the country in March. However, shops operated locally remain open with a diminishing contract.
Over the past few weeks, many major companies have announced their intentions to exit Russia and Belarus. These include Cisco Systems Inc, McDonald’s Corporation and Starbucks Coffee Company, among others.
“Nike has made the decision to leave the Russian marketplace,” the giant said in a statement. “Our priority is to ensure we are fully supporting our employees while we responsibly scale down our operations over the coming months.”
The West has responded to Russia’s interference in Ukraine with economic isolation, including implementing sanctions and international firms withdrawing their investments.
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The country is currently focusing on legislation that would fine foreign firms looking to exit, enabling the government to keep their assets and implement criminal punishments, as per Reuters.
Nike owns over 50 stores in Russia; approximately one-third are shut down, as per its website. In addition, Russian media relayed in May that the giant was ceasing its contract with its biggest franchisee in Russia, handling 37 stores.
Nike has revealed that Russia and Ukraine both make up less than 1% of their total revenue.
On Thursday, Cisco stated that it had “made the decision to begin an orderly wind-down of our business in Russia and Belarus.”
According to the giant, this measure will impact some hundred workers and is intended to ensure they are “treated with respect.”
“Cisco remains committed to using all its resources to help our employees, the institutions and people of Ukraine, and our customers and partners during this challenging time,” said a spokesperson for the company.
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