At a Glance:
- Uniqlo will still be operational in Russia, while several companies exit the country.
- Uniqlo has 49 stores across the country.
- Recently, big companies like KPMG, Netflix, American Express, and PricewaterhouseCoopers LLP cut ties with Russia.
Uniqlo owners have confirmed that the stores will be operational in Russia. There is a small group of international firms which have stayed in the country whereas, several big brands have temporarily suspended their operations across the country.
The owner of Uniqlo, Fast Retailing, has disclosed an email statement where the CEO, Tadashi Yanai, commented, “Clothing is a necessity of life. The people of Russia have the same right to live as we do.”
Brands suspending the operation Russia
Given the Russian invasion of Ukraine, there is political pressure on several companies to suspend their operations in Russia. The political pressure is also affecting the global payments systems to a range of high-tech products due to complicated operations.
Several large shippers have suspended container routes to and from Russia. International companies like Nike Inc, IKEA, energy giants BP, and Shell have temporarily closed their shops and have announced that they might exit Russia.
Furthermore, two of the big four companies like KPMG and PricewaterhouseCoopers LLP have cut ties with Russia. The same was followed by Netflix and credit card company American Express (AXP.N).
Danone, a French yogurt company, that accounts for 6% of its sale from Russia and Ukraine have now suspended their investment in Russia and also one of the two factories in Ukraine has been closed for now.
Uniqlo, PepsiCo & McDonald’s continue to operate
Alongside Uniqlo, other companies like McDonald’s and PepsiCo are also continuing operating in Russia, prompting NY State’s pension fund— a shareholder in the pair— which has requested them to pause their operations there.
Russia has now opened humanitarian corridors in several Ukrainian cities after piling civilian casualties and halted weekend evacuation efforts.
