September 28, 2022

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Uniqlo owner stays in Russia as Levi, AMEX and others cut ties

Uniqlo owner stays in Russia as Levi, AMEX and others cut ties
  • Russian Uniqlo Stores to Stay Open
  • Danone suspends its investments in the country
  • KPMG, PwC, EY and Deloitte have cut ties with local units
  • American Express calls Ukraine attack ‘unjustified’

MARCH 7 (Reuters) – Fast Retailing, owner of Uniqlo (9983.T) It will keep its stores in Russia open, joining a small group of international companies that persist even as dozens of major brands temporarily close operations or exit the country due to their invasion of Ukraine.

Political pressure is mounting on companies to halt business in Russia, while operations have also been complicated by sweeping sanctions affecting everything from global payment systems to a range of high-tech products.

Big shippers have blocked container routes to and from Russia and several Western companies from Nike Inc and home furnishings giant Ikea to energy majors BP and Shell (sigh) It closed the shop or announced plans to get out of the country.

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“Clothes are a necessity of life. The Russian people have the same right to live as us,” Fast Retailing CEO Tadashi Yanai said in remarks first published by Nikkei, adding that every country should oppose war.

A company spokesperson told Reuters the company had not noticed any noticeable impact on supply chain or logistics in Russia, where Uniqlo has 49 stores.

In contrast, Levi Strauss & Co Follow Favorite It suspended its Russian operations, including any new investments.

The Big Four accounting firms KPMG, PwC, EY and Deloitte moved one after another to cut ties with Russia, as did credit card company American Express. (AXP.N).

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Dairy cooperative Arla Foods, Danone French yogurt maker (DANO.PA) And the Belgian chemical group Solvay (SOLB.BR) It also suspended operations or investment in the country, while automaker Nissan was quoted by RIA Novosti news agency as saying it would halt production at its St Petersburg plant. Read more

Nissan said last week it would suspend car exports to Russia, joining peers such as General Motors (GM.N) Swedish car company Volvo (VOLCARb.ST).

The sun sets behind the skyscrapers at the Moscow International Business Center, also known as “Moscow City,” in Moscow, Russia, on April 23, 2018. REUTERS/Anton Vaganov

Among the companies that continued to operate in Russia was McDonald’s Corp. (MCD.N) and PepsiCo Inc (PEP.O), prompting the New York State Pension Fund – one of the pair’s contributors – to urge them and others to consider temporarily halting their operations there. Read more

Russia announced new “humanitarian corridors” on Monday to transport Ukrainians trapped under its bombardment – to Russia itself and its ally Belarus, in a move Kyiv immediately denounced as an immoral act. Read more

Russia described the campaign it launched on February 24 as a “special military operation”. It denies attacking civilian areas and says it has no plans to occupy Ukraine.

After Russian President Vladimir Putin signed a new media law on Friday, Chinese video app TikTok said it would suspend live broadcasts and upload videos to its platform in Russia. Read more

She said in a series of Twitter posts on Sunday.

Unprovoked attack

Several companies strongly condemned Russia’s actions as they suspended their services in the country.

“In light of the ongoing and unprovoked Russian attack on the people of Ukraine, American Express is suspending all operations in Russia,” AMEX said on its website. Read more

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A spokesperson for Netflix, which has already paused future projects and acquisitions in Russia, said it had suspended its service “due to the situation on the ground.” Read more

KPMG, PwC, EY and Deloitte have all said they will cut ties with their Russian operations, affecting thousands of employees. Read more

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Additional reporting by Akriti Sharma in Bengaluru, Chris Gallagher in Washington, DC, and Rocky Swift in Tokyo; Written by Anna Driver and Sayantani Ghosh; Editing by Diane Craft, Kirsten Donovan, Bernadette Bohm and Susan Fenton

Our criteria: Thomson Reuters Trust Principles.