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On March 3, the company temporarily suspended operations in all its stores in Russia.
Nike joined other brands such as McDonald’s and Renault that left the Russian market permanently.
For its part, Adidas stressed on Thursday that it has no plans to resume business in Russia.
The departure of large companies from Russia continues to be recorded after several months of the war between that nation and Ukraine. Recently One of the brands that has announced its total exit was Nike, which indicated that it will withdraw completely from that market, three months after suspending its operations in protest at the invasion of the Russian army.
Nike is one of the most iconic and popular brands in the world, which is why it registers 1,048 stores around the world, according to data from the firm. According to the stock market report presented by Nikedetails that after a year since the start of the Covid-19 pandemic, it had entered 44,538 million dollars at the end of its fiscal year, which represented not only an increase of around 7,100 million with respect to those exercised 2020, but a value higher than that registered by the multinational prior to the coronavirus crisis.
This sports brand gets less than 1 percent of its revenue from Ukraine and Russia together, the move is largely symbolic rather than material to its results.
Nike leaves Russia permanently
In a statement the sportswear manufacturer announced this Thursday, which joined the Western companies leaving the country.
With that announcement, Nike joined other major Western brands, such as McDonald’s and Renault, in confirming that it will leave the country entirely.
“Nike has made the decision to leave the Russian market. Our priority is to make sure we fully support our employees as we responsibly wind down our operations in the coming months,” Nike said in an emailed statement Thursday.
Recall that Nike said on March 3 that it would temporarily suspend operations at all of its owned-and-operated stores in Russia. in response to Moscow’s actions in Ukraine, adding that those that were still open were operated by partners independent of them.
Situation in Russia accelerates the exit of big brands
This decision by many Western companies to leave the Russian market comes after the possibility that in the coming weeks new laws will be approved that allow Moscow to seize assets and impose criminal sanctions, for which the companies that remain there have been encouraged to accelerate their exit.
Brands like Adidas said in March that it would close its Russian stores and pause online sales. For its part, Puma also suspended operations in March, while Reebok suspended sales in March and is in talks to sell more than 100 stores to Turkish shoe retailer FLO Magazacilik.
Following Nike’s announcement, Adidas stressed Thursday that it has no plans to resume business in Russia.
“The operation of Adidas stores and Adidas online retail in Russia continues to be suspended until further notice, this also applies to the delivery of products to Russia,” it said in an emailed statement.
Also other companies in the food sector such as McDonald’s have left Russia.
The flight of Western brands from Russia has been a problem for the country, especially for Russian citizens who were already loyal consumers of some of these companies. Likewise, the freezing of the investment of these specialist firms details that it will be a drag on the potential growth of Russia, as well as a severe blow to workers and a decrease in foreign exchange earnings from exports.
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