Nike is making a full exit from Russia three months after suspending its operations there, the U.S. sportswear maker told Reuters on Thursday.
Nike joined other major Western brands, like McDonald’s and Renault, in confirming it will leave the country completely in response to Moscow’s actions in Ukraine.
“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,” Nike said in an emailed statement.
Foreign companies seeking to exit Russia face the prospect of new laws being passed in the coming weeks allowing Moscow to seize assets and impose criminal penalties. Hence, some businesses accelerate their departure.
“What was a trickle is becoming a torrent (of Western companies exiting Russia)”, said Paul Musgrave, a political science professor at the University of Massachusetts.
In like manner, Adidas currently noted that it has no plans to resume business in Russia, the German sportswear company told Reuters on Thursday.
“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,” it said in an emailed statement.
Accordingly, Musgrave said companies that leave Russia may struggle to return.
“This presents opportunities for domestic firms in some markets but even more for brands from China and elsewhere to make inroads,” he indicated.