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The American Sportswear Nike Has Left Russia Permanently

Nike is working towards a permanent exit from Russia and seeks to reduce its business in the coming months

US sports apparel company Nike will exit Russia completely three months after temporarily shutting down its business there, according to an emailed statement from the company.

On March 3, Nike announced that it would temporarily shut down its business and activity across all stores owned or operated by Nike in Russia in response to Moscow’s attack on Ukraine. Today, the American company joins the group of huge Western brands such as McDonald’s and Google in their assertion of a complete exit from the country. Read more [The American Starbucks Exits Russia After 15 years].

Foreign companies seeking to get out of Russia after its war with Ukraine face the possibility of new laws emerging in the coming weeks that allow the Moscow government to take control of the assets of those companies and impose criminal fines on them. This has prompted some businesses to speed up the closure of their facilities and activities in the country, and for Nike, which collects less than 1% of its revenue from the Ukraine and Russia markets together, the move is more symbolic than tangible in its financial results. Read more [+400 Companies Have Withdrawn From Russia and Some Are Stuck].

Russian media sources reported in May that Nike had not renewed mega franchise agreements in Russia such as IRG, which operates 37 Nike-branded stores in Russia through its Up and Run subsidiaries.

Following the news, Nike’s stock rose by 1% during premarket trading in the United States. Read more [Nike Sales Growth In The 3Q Supported By The US Market].

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