The American manufacturer of sports goods and clothing Nike has decided to completely withdraw from Russia in the coming months, the agency writes with reference to a letter from the company. Reuters on Thursday, June 23rd.
“Nike has made the decision to exit the Russian market. Our priority is to ensure that our employees are fully supported as we responsibly reduce our operations in the coming months,” the company said in a statement.
When opening Russian On the Nike website, the following message appears: “Nike inc. has decided to withdraw from the Russian market. As a result, nike.com and the Nike mobile app will no longer be available in this region. Nike stores have recently closed temporarily and will not reopen.”
At the beginning of March, after Russian attacks on Ukraine, Nike has announced that it is suspending orders in Russia. The company explained that it “cannot guarantee the delivery of goods to customers in Russia,” which forced it to stop deliveries, shut down its Russian online store, and temporarily closed directly operated stores.
More than 1,000 companies have suspended relations with Russia
The first Nike stores in St. Petersburg and Moscow opened in 1994. The Russian and Ukrainian markets account for less than 1 percent of Nike’s revenue, according to Reuters, and therefore the company’s departure is “largely a symbolic step” and not tangible for its financial performance. Nike shares rose 1 percent in premarket trading ahead of the opening of US bourses, Reuters points out.
Nike rivals Adidas and Puma also announced in March that they were closing their stores in Russia. Adidas Chairman Kasper Rorsted spoke thenthat the company does not yet know what it will do in the future.
Total since the beginning of the Russian invasion of Ukraine about 1200 companies announced a complete withdrawal from the Russian market or the suspension of work on it, analysts at the Yale School of Management calculated.