Footwear giant Nike has revealed its plans to exit Russia – the most recent Western brand to leave the country after Moscow attacked Ukraine.
The American corporation stopped its online orders and shut down its stores in the country in March. Although shops operated by local partners remained open, the company is starting to diminish those contracts.
California-based tech company Cisco also stated that it would begin to diminish operations in Russia and Belarus completely. Meanwhile, other firms that have confirmed intentions to exit in the past few weeks include McDonald’s and Starbucks.
“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.”
Since the invasion started, Russia has seen increasing economic isolation, with the West and its allies implementing sanctions and international firms deciding to withdraw.
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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.
Previously, Nike revealed that Russia and Ukraine both compose under 1% of the giant’s 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.