Swedish fashion retailer H&M said in a statement on Monday, that the company decided to end operations in Russia. All sales in the country have already been paused since March following the invasion of Ukraine.
“After careful consideration, we see it as impossible given the current situation to continue our business in Russia,” H&M Group CEO Helena Helmersson said in a statement.
“We are deeply saddened about the impact this will have on our colleagues and very grateful for all their hard work and dedication,” she added.
The Russian branch of the company has operated there since 2009 and has about 6,000 employees. The company announced that it would reopen stores in Russia “for a limited period of time to sell remaining inventory” as part of the exit process.
The entire process of winding down is expected to cost the fashion company around 2 billion Swedish kronor which is about US$ 192 million.
“The full amount will be included as one-time costs in the results for the third quarter 2022,” the company said.
The Russian invasion of Ukraine triggered unprecedented sanctions and an exodus of foreign corporations, including food and drink giants Starbucks and Mcdonald’s.
Swedish network equipment maker Ericsson announced in April it would suspend all Russian operations “indefinitely,” while truck maker Volvo has stopped sales and halted production at its Kaluga plant.
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