Ukraine war: Uniqlo stays put in Russia as Netflix, Levi’s and others cut ties
- ‘Clothing is a necessity of life. The people of Russia have the same right to live as we do,’ says the head of Fast Retailing, which owns the brand
- Political pressure is building on companies to halt business in the country, while operations have also been complicated by sanctions over Putin’s invasion
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.
“Clothing is a necessity of life. The people of Russia have the same right to live as we do,” said Fast Retailing CEO Tadashi Yanai in remarks first reported by Nikkei, adding that every country should oppose war.
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Ukraine conflict prompts Ikea to suspend operations in Russia as consumers make last-minute buys
A spokesperson said the company had seen no noticeable impact on its supply chain or logistics in Russia, where Uniqlo has 49 stores.
In contrast, Levi Strauss & Co suspended its Russian operations, including any new investments. The move came after streaming giant Netflix, credit card company American Express and the Big Four accounting firms KPMG, PwC, EY and Deloitte cut ties with Russia.
Dairy cooperative Arla Foods, French yogurt maker Danone and Belgian chemicals group Solvay also suspended operations or investment in the country, while the RIA Novosti news agency cited carmaker Nissan as saying it would halt production at its factory in St Petersburg.
Nissan said last week it was suspending vehicle exports to Russia, joining peers like General Motors Co and Sweden’s Volvo Cars.
Netflix, TikTok block services in Russia to avoid crackdown
Among companies continuing to operate in Russia were McDonald’s Corp and PepsiCo Inc, prompting New York state’s pension fund – a shareholder in the pair – to urge them and others to consider pausing their operations there.
Russia announced new “humanitarian corridors” on Monday to transport Ukrainians trapped under its bombardment – to Russia itself and its ally Belarus, a move immediately denounced by Kyiv as an immoral stunt.
Russia calls the campaign it launched on February 24 a “special military operation”. It denies attacking civilian areas and says it has no plans to occupy Ukraine.
02:23
Russian oligarchs have their yachts seized as part of Western sanctions against Ukraine invasion
“We have no choice but to suspend live-streaming and new content to our video service while we review the safety implications of this law,” the social media company said in a series of Twitter posts on Sunday.
Many companies have strongly condemned Russia’s actions as they suspended services in the country.
“In light of Russia’s ongoing, unjustified attack on the people of Ukraine, American Express is suspending all operations in Russia,” it said on its website.
“Given the circumstances on the ground, we have decided to suspend our service in Russia,” a Netflix spokesperson said. Netflix had already temporarily stopped all future projects and acquisitions in Russia.
