As brands head for the exit, many Russian consumers are left empty handed.
Nike, Apple, H&M and Ikea are part of the wave of Western brands that have said they're suspending operations in Russia.Want a new iPhone 11? A pair of Nike Air Max Dawns? An Ikea Kivik couch? For the 144 million people living in Russia, these are part of a growing list of imported goods that became unavailable practically overnight.
Dozens of other companies followed suit and today, most global brands have some sort of presence there, from Starbucks to Marriott to Louis Vuitton. “What we’re seeing is unprecedented,” said Stephanie Petrella, a senior analyst at Greenmantle, a macroeconomic and geopolitical advisory firm. “These brands are just abandoning Russia.”
The logistical challenges are also daunting. For instance, there may be no way to physically get items to Russia. Maersk and other shipping giants are no longer visiting Russian ports. UPS and FedEx aren’t running packages to people’s doorsteps. Another roadblock: Accepting payments and remitting profits, given sanctions against Russian banks. Running afoul of sanctions, even accidentally, can result in hefty fines.
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