Since Russia’s invasion of Ukraine in February, a good number of the top western brands began to quit the country and NIKE has followed suit in a recent announcement. The US sportswear giant closed the stores it owned in the country in March and halted online orders. But shops that were run by its local partners continued to operate and now the firm has decided to wind down on those agreements.

The company said in a statement that it has decided to leave the Russian marketplace as its priority is to ensure the full support of its employees and responsibly scale down on operations over the coming months. Since the invasion, the West and its allies imposed sanctions on Russia which fostered the exit of international companies and the country has grown increasingly economically isolated.

According to Reuters reports, the country is trying to salvage the situation by working on legislation that would punish foreign companies seeking to leave. This would allow the government to seize their assets and impose criminal penalties.

According to its website, NIKE has over 50 stores in Russia about a third of which are closed. The company had disclosed previously that Russia and Ukraine together accounted for less than 1% of the company’s revenue. Also acknowledging that this decision would affect hundreds of employees, the company said it would ensure that they are treated with respect.

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