Nike announces to make 'full exit' from Russia as Western firms departing accelerates

In retaliation to Russian military offensive in Ukraine, American multinational corporation Nike announced on Thursday that it will make "full exit" from Russia. In March, US-based manufacturer of footwear and clothing h stopped accepting online orders and shut its local stores in Russia. Local partners' stores were operational in  country but  company is now ending ir contracts with m, BBC reported. 

company on its official website said, “Nike Inc. has me decision to leave Russian marketplace. Nike.com and Nike mobile app will not be available in this region anymore. Nike stores have been temporarily closed recently and will not reopen."

US sportswear giant declared in May that it would not extend existing contracts with Russian partners or sign any new ones. As per its website, Nike has over 50 stores in Russia, with nearly a third of m being shuttered. Furrmore, Russian media reported in month of May that firm was terminating its contract with its largest franchisee in that country, who was in charge of 37 locations. Russia and Ukraine collectively contributed less than 1% of Nike's total revenue, as previously revealed by company.  

Over 1000 businesses have cut ties with Russia: Report

In dition to this, according to a media report from month of May, over 1000 businesses have cut ties with Russia since it started its invasion of Ukraine. As of May 31, as many as 1,037 firms have left Russia, while 438 more have scaled ir operations, according to information provided by Kyiv School of Economics. 590 businesses are still active in Russia, Kyiv School of Economics reported. 

Since incursion, when West and its allies have imposed sanctions and multinational corporations have left country, Russia has become more and more economically isolated. Even though companies are leaving Russia, On June 11, McDonald's restaurants reopened under a new name: "Vkusno & tochka," which translates to "Tasty and that's it." 

All 850 Russian outlets of American fast-food giant McDonald's were shut down on March 14, just after Russia launched its military campaign against Ukraine. company, which held a 7% market share in catering, announced its exit from Russia on May 16 and sold company to Alexander Govor, a Russian, via Ministry of Industry and Tre, as per media reports. 

Meanwhile, President of Ukraine, Volodymyr Zelenskyy has asked businesses on June 8 to stop doing business in Russia and begin doing business in his country inste.  

(Image: AP/ Unsplash)