EXCLUSIVE Nike to make full exit from Russia

PARIS/COPENHAGEN/LONDON, June 23 (Reuters) – Nike (NKE.N) is making a full exit from Russia three months after suspending its operations there, the U.S. sportswear maker instructed Reuters on Thursday, because the tempo of Western firms leaving the nation accelerates.

Nike mentioned on March 3 it will briefly droop operations in any respect its Nike-owned and -operated shops in Russia in response to Moscow’s actions in Ukraine, including that these nonetheless open have been operated by unbiased companions.

On Thursday, it joined different main Western manufacturers, like McDonald’s and Renault, in confirming it should go away the nation utterly.

“Nike has made the choice to depart the Russian market. Our precedence is to make sure we’re totally supporting our workers whereas we responsibly scale down our operations over the approaching months,” Nike mentioned in an emailed assertion.

International firms looking for to exit Russia over the struggle in Ukraine face the prospect of latest legal guidelines being handed within the coming weeks permitting Moscow to grab belongings and impose prison penalties. That has inspired some companies to speed up their departure.

“What was a trickle is changing into a torrent (of Western firms exiting Russia)”, mentioned Paul Musgrave, a political science professor on the College of Massachusetts.

Different sportswear makers have additionally been pulling again.

Rival Adidas (ADSGn.DE) mentioned in March it was shutting its Russian shops and pausing on-line gross sales. Puma (PUMG.DE) additionally suspended its operations in March. Reebok suspended gross sales in March and is in talks to promote greater than 100 shops to Turkish shoe retailer FLO Magazacilik. learn extra

Adidas at the moment has no plans to renew enterprise in Russia, the German sportswear firm instructed Reuters on Thursday.

“The operation of Adidas’ shops and Adidas’ on-line retail in Russia continues to be suspended till additional discover, this additionally applies to the supply of products to Russia,” it mentioned in an emailed assertion.

Musgrave mentioned firms that go away Russia could wrestle to return.

“This presents alternatives for home corporations in some markets however much more for manufacturers from China and elsewhere to make inroads,” he mentioned.

For Nike, which will get lower than 1% of its income from Ukraine and Russia mixed, the transfer is basically symbolic fairly than materials to its outcomes.

The corporate has a historical past of taking a stand on social and political points. It supported American soccer quarterback Colin Kaepernick in his choice to kneel throughout the U.S. nationwide anthem as a protest towards racism and dropped Brazilian soccer star Neymar final yr as a result of he refused to cooperate in an investigation into sexual assault allegations.

Russian media reported in Could that Nike had not renewed agreements with its largest franchisee in Russia, Ingenious Retail Group (IRG), which operates 37 Nike-branded shops in Russia via its subsidiary Up And Run.

Reporting by Mimosa Spencer, Jacob Gronholt-Pedersen and Richa Naidu. Further reporting by Praveen Paramasivam; modifying by Matt Scuffham, Jason Neely, Bernadette Baum and Jane Merriman

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