Uniqlo stays put in Russia as other global chains pull out
Uniqlo owner Fast Retailing will keep its stores in Russia open, joining a small group of international firms that are staying put even as dozens of big brands temporarily shutter operations or exit the country over its invasion of Ukraine.
Political pressure is building on companies to halt business in Russia, while operations have also been complicated by sweeping sanctions affecting everything from global payments systems to a range of hightech products.
Boeing on Monday said it had suspended buying titanium from Russia, since it had sufficient supply for plane production, while European rival Airbus said it was sourcing titanium from Russia and other countries in accordance with sanctions.
Large shippers have suspended container routes to and from Russia and many Western companies, from Nike Inc and home furnishings giant Ikea to energy majors BP and Shell , have closed shop or announced plans to exit the country.
Dutch technology investor Prosus will write off a $700-million stake in Moscow-headquartered online platform VK Group, known for the VKontakte social network, Russia’s answer to Facebook. VK Group’s CEO Vladimir Kirienko was added to a U.S. sanctions list after Russia’s invasion of Ukraine.
A spokesperson told Reuters the company had seen no noticeable impact on its supply chain or logistics in Russia, where Uniqlo has 49 stores.
“Clothing is a necessity of life. The people of Russia have the same right to live as we do,” said CEO Tadashi Yanai of Japan-based Fast Retailing, in remarks first reported by Nikkei, adding that every country should oppose war.
In contrast, Levi Strauss suspended its Russian operations, including any new investments.