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Nike to fully exit Russia, will scale down in coming months

By Mimosa Spencer, Jacob Gronholt-Pedersen and Richa Naidu PARIS/COPENHAGEN/LONDON (Reuters) -U.S. sportswear maker Nike (NYSE:NKE) is making a full exit from Russia, three...
Nike to fully exit Russia, will scale down in coming months © Reuters. People walk past a closed store of the sporting goods retailer Nike at a shopping mall in Saint Petersburg, Russia May 25, 2022. REUTERS/Anton Vaganov

By Mimosa Spencer, Jacob Gronholt-Pedersen and Richa Naidu

PARIS/COPENHAGEN/LONDON (Reuters) -U.S. sportswear maker Nike (NYSE:NKE) is making a full exit from Russia, three months after suspending its operations there, the company said in an emailed statement Thursday.

Nike said on March 3 it would temporarily suspend operations at all its Nike-owned and -operated stores in Russia in response to Moscow's actions in Ukraine, adding that those still open were operated by independent partners.

On Thursday, it joined other major Western brands, like McDonald's (NYSE:MCD) and Google (NASDAQ:GOOGL), in confirming it will leave the country completely.

Foreign companies seeking to exit Russia over the war in Ukraine face the prospect of new laws being passed in the coming weeks allowing Moscow to seize assets and impose criminal penalties. That has encouraged some businesses to accelerate their departure.

"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," the firm said in an emailed statement.

For Nike, which gets less than 1% of its revenue from Ukraine and Russia combined, the move is largely symbolic rather than material to its results.

The company has a history of taking a stand on social and political issues, from supporting American football quarterback Colin Kaepernick in his decision to kneel during the national anthem as a protest against racism, to dropping Brazilian soccer star Neymar last year because he refused to cooperate in an investigation into sexual assault allegations.

Russian media reported in May that Nike had not renewed agreements with its largest franchisee in Russia, Inventive Retail Group (IRG), which operates 37 Nike-branded stores in Russia through its subsidiary Up And Run.

Shares in Nike were up nearly 1% in premarket U.S. trading.

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27-06-2022 10:27:04 (UTC+7)

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    EUR/USD 1.0555 Neutral  
    GBP/USD 1.2273 ↑ Sell  
    USD/JPY 134.79 Neutral  
    AUD/USD 0.6914 ↑ Sell  
    USD/CAD 1.2883 ↑ Buy  
    EUR/JPY 142.26 ↑ Sell  
    EUR/CHF 1.0112 Buy  
    Gold 1,836.85 ↑ Sell  
    Silver 21.390 Sell  
    Copper 3.7847 ↑ Sell  
    Crude Oil WTI 107.58 ↑ Sell  
    Brent Oil 109.07 ↑ Sell  
    Natural Gas 6.204 ↑ Sell  
    US Coffee C 223.40 ↑ Buy  
    Euro Stoxx 50 3,533.17 Neutral  
    S&P 500 3,911.74 ↑ Buy  
    DAX 13,118.13 ↑ Sell  
    FTSE 100 7,208.81 ↑ Buy  
    Hang Seng 22,316.50 Sell  
    Small Cap 2000 1,765.74 ↑ Buy  
    IBEX 35 8,244.10 Sell  
    BASF 42.215 ↑ Buy  
    Bayer 57.79 ↑ Sell  
    Allianz 181.20 ↑ Sell  
    Adidas 170.36 ↑ Sell  
    Lufthansa 5.966 ↑ Sell  
    Siemens AG 102.62 ↑ Buy  
    Deutsche Bank AG 8.919 ↑ Buy  
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank6,775/ 6,845
(15/ 5) # 1,674
SJC HCM6,795/ 6,865
(10/ 0) # 1,695
SJC Hanoi6,795/ 6,867
(10/ 0) # 1,697
SJC Danang6,795/ 6,867
(10/ 0) # 1,697
SJC Nhatrang6,795/ 6,867
(10/ 0) # 1,697
SJC Cantho6,795/ 6,867
(10/ 0) # 1,697
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