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

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

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

The 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 them being shuttered. Furthermore, Russian media reported in the month of May that the 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 the company.  

Over 1000 businesses have cut ties with Russia: Report

In addition to this, according to a media report from the 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 their operations, according to the information provided by the Kyiv School of Economics. 590 businesses are still active in Russia, the Kyiv School of Economics reported. 

Since the incursion, when the West and its allies have imposed sanctions and multinational corporations have left the country, Russia has become more and more economically isolated. Even though companies are leaving Russia, On June 11, the 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. The company, which held a 7% market share in catering, announced its exit from Russia on May 16 and sold the company to Alexander Govor, a Russian, via the Ministry of Industry and Trade, as per media reports. 

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

(Image: AP/ Unsplash)