Last week it was reported that McDonalds has left Russia—but continue their stores in the terrorist/slave nation of China. Starbucks is leaving Russia—but staying in China the nation that took over Hong Kong and destroyed a free nation. Now NIKE is leaving Russia—but continues to have their products made in China, a nation that suppresses religion, free speech and has gulags for Muslims and protestors.
“U.S. sporting heavyweight Nike is exiting Russia after suspending operations in March, according to news reports on Wednesday, another symbolic departure of a major American brand as multinational firms including McDonald’s and Starbucks sever ties with Moscow for invading Ukraine.
Nike is reportedly leaving Russia after ending franchise agreements.”
Why are any American firms still operating in Russia or selling to Russia?
Nike Is Reportedly Leaving Russia After Not Renewing Main Franchise Contract
Robert Hart, Forbes Staff, 5/25/22
U.S. sporting heavyweight Nike is exiting Russia after suspending operations in March, according to news reports on Wednesday, another symbolic departure of a major American brand as multinational firms including McDonald’s and Starbucks sever ties with Moscow for invading Ukraine.
Nike is reportedly leaving Russia after ending franchise agreements.
KEY FACTS
While Nike temporarily closed most of its Russian stores in early March and withdrew its sponsorship of popular football club Spartak Moscow, a number of independently operated but authorized retail stores have remained open.
Inventive Retail Group (IRG), Nike’s largest franchisee in Russia, said the sportswear brand had suspended shipments and supplies are running low, according to Russia’s Vedomosti paper on Wednesday.
PROMOTED
IRG, which operates 37 of Russia’s 56 remaining authorized Nike stores, also said the brand has not renewed its contract or offered them a new one to sign.
The company’s existing agreement with Nike is due to expire on Thursday, Vedomosti said.
Nike told Forbes it has made the decision not to renew or enter into new business commitments in Russia “due to operational challenges in Russia,” including agreements with franchisee Up&Run, a subsidiary of IRG.
IRG did not immediately respond to Forbes’ request for comment.
Forbes Business
KEY BACKGROUND
Nike, like many recognizable Western brands, was swift to repudiate Russia over the war in Ukraine. However, it was among a small minority of companies—including Burger King, the Marriott hotel group and British supermarket Marks and Spencer—that struggled to completely extricate themselves from the Russian market due to complex franchise agreements. Three months since Moscow launched the invasion, more companies are transitioning from suspending their Russian operations to leaving the country entirely, including two iconic American brands, McDonald’s and Starbucks, and French carmaker Renault. Russian President Vladimir Putin has threatened to fight back against companies suspending operations or leaving the country and said he will nationalize their assets. Renault marks the first major nationalization of a Western company’s assets after handing its factory over to the city of Moscow, reportedly for a nominal sum of one ruble.
TANGENT
British retailer Marks and Spencer, also known as M&S, announced it would fully exit the Russian market on Wednesday over the war. Like Nike, franchise agreements had prevented it from fully leaving Russia. The company said it stopped shipments to Russia on March 3 and has arranged to exit the franchise agreement. The company said it will endure a $38.7 million (£31 million) charge for leaving.
