Image Source: Bloomberg
Lego, the largest toy company in the world has stopped all operations in Russia “indefinitely,” as a result of Russia’s invasion of Ukraine.
Although the corporation did not provide a detailed explanation for the withdrawal, it did state that there had been “disruption” when it attempted to do its business.
With the change, Inventive Retail Group will no longer run the company’s 81 stores in Russia, and its Moscow employees will no longer work for the company.
IRG, which also handled stores for Western companies like Nike and Samsung in Russia, announced earlier on Tuesday that the agreement with Lego had been canceled.
After stopping shipments to Russia in March, Lego said in June that it was temporarily closing some stores because of supply problems.
To get around limitations put in place due to the situation in Ukraine, Russia added Lego toys to a list of commodities that might be imported without the permission of the intellectual property owner in early May. The ministry of industry and trade put out a list of things like Apple and Samsung smartphones, well-known automakers, video game consoles, and accessories for many different industries.
Earlier on Tuesday, the Russian version of Inc. Magazine said that Lego would stop doing business in Russia for good and end its contract with IRG.
The Danish company Lego was one of the few Western companies still doing business in Russia after an unofficial economic embargo was put in place because multinational companies like McDonald’s, Starbucks, and Nike had moved into the Ukraine.
Due to sanctions and warnings from the Kremlin that foreign-owned assets could be taken, many western brands have left Russia.
Several companies, including Burger King, had locations in Russia that were run by franchisees. They had to end their contracts with these franchisees, mostly by getting rid of their interests in the country by selling real estate and shares.