Nike leaving Russian market - media

Nike leaving Russian market - media

Nike has not extended its franchise agreement with Inventive Retail Group (IRG), which owns the company’s Russia-based largest single-brand chain.

That’s according to Vedomosti, Ukrinform reports.

According to IRG President Tikhon Smykov, Nike will therefore not be able to set up deliveries to Russia "in the foreseeable future."

"As IRG's inventories run out, it will be forced to close all its stores under the brand," Smykov wrote, adding that the news was a blow to him as it was to all employees.

Read also: EU’s seventh sanctions package against Russia may block all Russian banks – Office of the President

IRG PR chief Lyudmila Semushina confirmed that deliveries of Nike products have been suspended and that the products are in short supply.

It is noted that in March, the company had already stated that it cannot guarantee the delivery of goods to buyers in Russia. It stopped deliveries, shut down the Russian online store, and temporarily closed all stores under its direct management. From March to May, the number of Nike single-brand stores in the country has already decreased from 116 to 56, according to the company's official website. Of these, 19 are temporarily closed.

IRG manages 37 Nike stores. According to the information on the company website, nine stores are currently closed.

It has been reported that since the first days of a full-scale invasion of Ukraine, the country’s international allies and partners have imposed tough sanctions and export restrictions on Russia. Hundreds of companies have announced termination of operations in Russia and withdrew from joint projects.

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