Zara, Paypal and Samsung add up to the list of companies suspending business in Russia over Ukraine invasion.
Inditex, the owner of the clothing retailer Zara, will close all 502 of its eight brands, including Bershka, Stradivarius, and Oysho. Other brand like Paypal said it was shutting down its services due to "violent military assault in Ukraine."
Samsung, Russia's largest smartphone supplier, has halted shipments due to "geopolitical developments." Other firms as Apple, H&M, and Ikea, among other major firms, have already discontinued selling in Russia.
The impact? More than 9,000 Inditex employees in Russia are projected to lose their jobs as a result of the clothing store closures. The Spanish-owned business told the BBC it was drawing up a plan to support them.
"In the current circumstances Inditex cannot guarantee the continuity of the operations and commercial conditions in the Russian Federation and temporarily suspends its activity," the Zara owner company said.
Adam Cochrane, an analyst at Deutsche Bank Research, told Reuters that logistical difficulties and the weakness in the rouble - resulting in large price increases for the Russian consumer - would make "operations difficult for all retailers importing into Russia".
News source:
(2022, March 11). Zara, Paypal and Samsung suspend business in Russia over Ukraine invasion. BBC News. Retrieved March 27, 2022 from https://www.bbc.com/news/uk-60631835.
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