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Since the invasion of Ukraine in February, Nike is the most recent Western company to announce plans to depart Russia.
In March, the US sportswear juggernaut stopped accepting online orders and shut its local stores. Local partners’ stores continued to be open, but the company is ending their contracts with them.
The industry leader in networking, Cisco, recently announced that it would begin shut down operations in Belarus and Russia. McDonald’s and Starbucks are two additional businesses that have recently finalized their exit strategies.
Nike issued a statement saying, “Nike has decided to exit the Russian market.” As we sensibly reduce our activities over the upcoming months, our first focus is ensuring we adequately support our staff.
Since the invasion, as the West and its allies have imposed sanctions and multinational corporations have fled the country, Russia has become increasingly economically isolated. According to Reuters, the nation is currently working on legislation that would punish foreign corporations looking to leave, enabling the government to take their assets and apply criminal penalties.
According to its website, Nike has more than 50 stores in Russia, with nearly a third of them being closed. In addition, Russian media claimed in May that the firm was terminating its contract with its biggest franchisee in that country, who was in charge of 37 locations.
As previously revealed, Russia and Ukraine collectively contributed less than 1% of Nike’s total revenue.
On Thursday, Cisco announced that it had “decided to start an orderly wind-down of our business in Russia and Belarus.” The US company stated that this choice would impact a few hundred employees and wanted to ensure they were “treated with dignity.”
In March, the networking giant stopped doing business in the area, including sales and services, costing its third-quarter revenues $200 million (£160 million).