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Russia has incurred heavy losses in recent weeks after invading Ukraine. Drones...
Lego pulls out of Russia ‘indefinitely’. (credits: Google)
The world’s largest maker of toys, Lego, has announced it will cease operations in Russia permanently due to “continuing significant disruption.”
Following the invasion of Ukraine, the company stopped shipping goods to Russia, although its stores were still operating while most of its competitors withdrew.
Lego said that it would no longer work with Inventive Retail Group, which manages 81 Lego-owned stores.
It made no mention of Russia’s invasion of Ukraine as justification for leaving the country.
“When the Lego Group stopped exports to Russia in early March, we also ceased all commercial activities and placed nearly all of our workers on prolonged leave,” a Lego spokeswoman stated.
The business said that it was eliminating the majority of its Moscow-based staff and has “offered financial packages to support 70 employees while they hunt for new possibilities.”
Following the Kremlin’s onslaught on Ukraine, which began on February 24, only a small number of Western brands are still present in Russia. One of these is Lego.
Some businesses had to dissolve intricate alliances with outside businesses in order to sell their products through franchisees in Russia. McDonald’s made the announcement in May that it will close the locations in Russia that were subsequently bought by a local business. After being “de-arched,” the eateries adopted the name “Tasty and that’s all.”
Lego has made the decision not to express its opinion about Russia’s actions directly, in contrast to a number of other businesses. “Our thoughts are with all the children and families suffering as a result of the war in Ukraine,” Lego stated in March.
A few years ago, the Danish company faced outrage after it came to light that it had declined to fulfil the Chinese artist Ai Weiwei’s mass order of plastic bricks.
Ai had planned a similar display in Australia after using Lego to make images of exiled or imprisoned dissidents in the US, including Nelson Mandela. He said, however, that Lego had informed the Melbourne museum that it could not use its bricks for artwork that contained “any political, religious, racist, vulgar or defamatory sentiments.”
Due to widespread criticism, Lego ultimately changed its position.
taking out
Following President Putin’s invasion of Ukraine, an increasing number of Western companies who had first ceased operations in Russia are now choosing to completely withdraw.
Following a trading halt in March, US sportswear company Nike and coffee chain Starbucks have both completely exited the Russian market.
Renault, a car manufacturer, also sold its domestic operations. A Russian science institute will purchase the French company’s 68 percent stake in carmaker Avtovaz, while Moscow will receive its shares of Renault Russia.
Networking behemoth Cisco recently announced that it would begin to completely cease operations in Belarus and Russia.
Other well-known companies, including rival Estee Lauder and L’Oreal, have declared they will close stores and stop doing business online but have not yet made any long-term withdrawal plans public.
Some businesses have been hesitant to tear down fences since Russia was the fifth-largest retail market in Europe last year, with a market value of £337.2 billion.
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