Cisco, Nike quit Russia, as pace of Western firms leaving speeds up



* Cisco, Nike join MacDonald's, Renault in quitting

* New Russian law may encourage more foreign firms to go

* 'Trickle is becoming a torrent,' says analyst

By Praveen Paramasivam, Supantha Mukherjee and Mimosa Spencer

June 23 (Reuters) - U.S. companies Cisco Systems CSCO.O and Nike NKE.N plan to fully exit Russia, the two firms told Reuters on Thursday, as the pace of Western firms departing accelerated.

Telecoms equipment maker Cisco will wind down its business in Russia and Belarus, the company said. Nike NKE.N is making a full exit from Russia three months after suspending its operations there, the sportswear maker said.

Foreign companies seeking to exit Russia over the war in Ukraine face the prospect of a new law being passed in the coming weeks allowing Moscow to seize assets and impose criminal penalties. That has encouraged some businesses to accelerate their departure.

"What was a trickle is becoming a torrent", said Paul Musgrave, a political science professor at the University of Massachusetts, commenting on the latest round of companies announcing they would leave.

Cisco suspended business operations, including sales and services, in Russia in March.

"We have now made the decision to begin an orderly wind-down of our business in Russia and Belarus," it said in an emailed statement on Thursday.

Earlier this month, Cisco's rival International Business Machines Corp IBM.N began winding down its business in Russia and Microsoft said it was making substantial cuts to its Russian business.

The withdrawal of top technology firms such as Cisco, IBM and Microsoft limits access to critical equipment for Russian businesses and households. They may now have to depend on older equipment and domestic alternatives.

Cisco has offered relocation options to its few hundred employees in those countries, it said. The company did not disclose which countries the employees were offered as alternative locations.

RIVALS MAY BENEFIT

Companies heading for the exit may struggle to return, said Musgrave. "This presents opportunities for domestic firms in some markets but even more for brands from China and elsewhere to make inroads," he said.

Nike said on March 3 it would temporarily suspend operations at all its Nike-owned and operated stores in Russia. It has now decided to leave entirely, it said Thursday.

Cisco and Nike join the likes of McDonald's and Renault in making complete exits from Russia. More companies are expected to leave in the coming weeks ahead of the new law.

The law, which could be in place within weeks, allows Russia to appoint administrators over companies owned by foreigners in "unfriendly" countries, who want to quit Russia as the conflict with Ukraine drags down its economy.

Nike's rival Adidas said in March it was shutting its Russian stores and pausing online sales.

Adidas currently has no plans to resume business in Russia, the German sportswear company told Reuters on Thursday.

"The operation of Adidas' stores and Adidas' online retail in Russia continues to be suspended until further notice, this also applies to the delivery of goods to Russia," it said in an emailed statement.


Writing by Matt Scuffham and Richa Naidu; Editing by Edmund Blair

면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.

온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.

이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.

우리는 웹사이트에서 최고의 경험을 전해드리기 위해 쿠키를 사용하고 있습니다. 자세히 읽거나 쿠키 설정을 변경하세요.

리스크 경고: 고객님의 자본이 위험에 노출 될 수 있습니다. 레버리지 상품은 모든 분들에게 적합하지 않을수 있습니다. 당사의 리스크 공시를 참고하시기 바랍니다.