People walk past a closed store of the sporting goods retailer Nike at a shopping mall in Saint Petersburg, Russia May 25, 2022
Source: Reuters

Nike to make full exit from Russia

Nike joins the list of Western Corporations leaving Russia as the American multinational conglomerate told Reuters on June 23 that they are withdrawing all its businesses in the country. Three months ago the corporation adjourned its services in Russia.

People walk past a closed store of the sporting goods retailer Nike at a shopping mall in Saint Petersburg, Russia May 25, 2022
Source: Reuters

The American multinational company announced on March 3, 2022, that they are adjourning the services at all its owned and operated stores in Russia for a limited time. This move came after Russia invaded Ukraine. Furthermore, the company said that if any of its stores are still at work then it would be the one regulated by autonomous associates.

Some other multinational companies like Renault and McDonald’s have already withdrawn all their services in Russia after it invaded Ukraine.

The U.S. sportswear company in a mail said that Nike has reached an agreement to exit the Russian market. The company has prioritized aiding its workers with all their needs at the same time prudently cutting down the undertaking over the coming months.

The Western Corporations pursuing to leave the country because of its ongoing war with Ukraine meet the anticipation of new rules being adopted in the country in the recent future that will allow Moscow to annex resources and enforce criminal damages. This upcoming law has also pushed many corporations to advance their exit from the country.

A faculty member of the University of Massachusetts said that earlier the number of Foreign companies leaving Russia was low but now it has become so large that it seems to be uncontrollable.

The professor also said that these corporations who are departing from the country might face trouble in making a comeback as their leave will make roads for many local businesses and some other foreign businesses from places like China.

The rival companies of Nike like Puma and Reebok have also adjourned their operations in the country from March 2022. While Adidas has already closed all its offline stores and paused the online sales in Russia back in March.

The collective earnings of Nike from Ukraine and Russia are less than 1% of its total credit generated so this action taken by the company is predominantly significant.

Nike has a past of fighting for social and political affairs. Earlier the U.S. conglomerate was seen taking a stand for American football quarterback Colin Kaepernick in his choice to bow down during the U.S. National anthem as an outcry against racial discrimination.

Previously in May, the Russian news reports claimed that the company did not refurbish deals with its largest franchisee in the country.