Nike, one of the world’s biggest sports shoe brands, has announced that it will be leaving Russia. The company has followed other Western companies such as Starbucks and McDonald’s.
The American corporation was finally forced to close its online orders and shut down stores in March. Although shops operated by local partners remained open, the company is starting to reduce contracts too.
The trend of businesses pulling out of Russia continues as more companies announce their intention to leave. This includes Cisco, which plans to reduce operations within the country by year-end.
“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.”
In response to the invasion by Russia, Western nations have implemented increasingly harsh economic penalties.
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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 make up a microscopic amount of their 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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