Increasingly more retailers and brands are scaling back their activities in Russia in protest against its invasion of Ukraine. At the same time, a stream of solidarity actions is launched. Here is an overview (this article is updated whenever needed).
Swedish appeal
Many international companies are now partially and/or temporarily withdrawing from the Russian market. They hope to put pressure on Russia and to make Russian consumers aware of the invasion of Ukraine. Among them are also many retailers and consumer brands. Unanimity, however, is not on the cards.
On Tuesday, Swedish media already called on Ikea to keep all Russian stores closed for as long as there is a war in Ukraine. “We believe that Ingvar Kamprad would not have hesitated for one second to show solidarity in one way or another with the Ukrainian people”, the initiators wrote in an opinion piece. The furniture retailer did not react at first, but changed its mind on Thursday. The company is now temporarily halting its operations in Russia and Belarus: this applies to imports and exports as well as to production and retail activities – but the shopping centres will remain open to ensure that consumers have access to everyday necessities. The Ikea Foundation is also donating 20 million euros for humanitarian aid.
At first, fashion chain H&M also did not respond to similar calls, but it has ceased its Russian operations since the first version of this article was published.
Digital services
Other retailers were quicker to respond: Apple, for example, has ceased selling its products in Russia. Services such as Apple Pay and Apple Maps are being turned off there. In a statement, the company said to be “deeply concerned” about the Russian invasion and to be standing with those “suffering as a result of the violence”. Last week, Ukrainian Deputy Prime Minister Mykhaylo Fedorov had called for the closure of the Apple Store in Russia through an open letter.
Google is also taking measures: Russian state media will be banned from its platforms and many news channels will no longer receive advertising revenue from websites, apps and YouTube. Its payment service, Google Pay, will also be restricted – but not entirely blocked.
Commercial motives?
Nike has closed its Russian online store: according to the company, it can no longer guarantee the delivery of goods to customers in Russia. The physical stores, however, remain open. The brand has not taken an explicit stance on the conflict in Ukraine.
The fashion platforms belonging to fashion group YNAP (Net-a-Porter, Mr Porter and Yoox) will cease deliveries to Russia. “Due to the current situation, we are unable to complete any new orders in your country. All order fulfilment has been suspended until further notice”, the webshops displayed. However, there is – again – no official statement on the position it is taking.
Lingerie chain Hunkemöller has put its expansion plans in Russia on hold for the time being. The chain has some twenty stores and an online shop in Russia. “Our thoughts are with everyone affected by this situation”, the company states. Russian fans of the rougher things will not be satisfied either: Harley-Davidson no longer supplies motorbikes, and car brands Honda and Mazda have also suspended exports to Russia.
For many retailers, these decisions may be motivated not only by politics but also by commercial motives: doing business with Russia has become a lot more complex since the country got thrown out of the international Swift payment system and since the rouble is in free fall.
Boycott
Meanwhile, several European retailers are taking Russian products off the shelves in their home markets. In Poland, supermarket chains Biedronka and Carrefour have decided to stop selling products from Russia and Belarus. In Denmark, Netto is following suit, as is Maxima in Latvia. In Finland – where the state has a monopoly on the sale of alcohol – Russian vodka is no longer available.
In Belgium, market leader Colruyt stops placing orders in Russia. At Delhaize, Russian Standard vodka and Kamchatka crab disappear from the shelves. Albert Heijn, Aldi and Carrefour say they have no Russian products in their assortment.
Supporting Ukraine
On the other hand, Ahold Delhaize does express an unequivocal position: “We are shocked and deeply saddened by the war in Ukraine and strongly condemn this act of military aggression in breach of international law and order”, the group states in a press release. The company is donating one million euros to the Red Cross for humanitarian aid to Ukraine and its neighbouring countries, which are accommodating refugees. The Romanian and Czech subsidiaries will provide food aid to local initiatives.
Belgian brewery group AB InBev has joined the relief effort as well, filling half a million cans with drinking water. They will leave next week for border posts in Poland and Moldavia. The beer producer has a considerable presence in both Ukraine and Russia.
Several retailers in Eastern Europe are making efforts to deliver essential goods to their subsidiaries in Ukraine and neighbouring countries. Spar International, for example, has set up a support fund to enable Spar Ukraine to continue to be supplied. Biedronka is lowering the prices of bread and other essential food items in its stores near the Polish-Ukrainian border. Coop Denmark has sent five trucks stocked with emergency aid to Ukraine. The Spanish chain Caprabo offers customers the opportunity to make a donation at the checkouts to support Unicef.
