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US-based sportswear brand NIKE has announced plans to leave the Russian market completely, making it the latest brand to exit the country since the start of its invasion of Ukraine.
The company confirmed its departure from Russia in a statement to Reuters.
The move comes three months after Nike suspended operations at all its company-owned and company-operated stores in Russia in response to the ongoing conflict.
In an emailed statement to Reuters, Nike said: “Nike has made the decision to leave the Russian marketplace.
“Our priority is to ensure we are fully supporting our employees while we responsibly scale down our operations over the coming months.”
Last month, Nike signalled its plan to exit from Russia after refusing to renew its franchise agreement with Inventive Retail Group (IRG), a Russian franchisee that operates 37 Nike-branded stores.
IRG president Tikhon Smykov stated that the company could not organise the supply of goods to Russia in the future.
Since March, Nike has seen its single-brand stores in Russia fall in number from 116 to 56.
Reuters noted that the company’s combined revenue from its operations in Ukraine and Russia represented less than 1% of its total revenue.
As such, the departure is expected to have a minimal impact on its results.
Several major Western brands, including McDonald’s and Renault, have previously announced their exit from Russia due to the Ukraine invasion.
Nike’s rival brand Adidas also told Reuters that it has no plans to restart its operations in Russia, having closed its stores in the country in March.
In an emailed statement, Adidas said: “The operation of Adidas’ stores and Adidas’ online retail in Russia continues to be suspended until further notice; this also applies to the delivery of goods to Russia.”
Other sportswear brands, including Puma and Reebok, have also temporarily suspended their operations in Russia.