Multinational clothing and home decor company H&M has announced that it is leaving Russia amid mounting sanctions against the country.
“Given current operational challenges and an unpredictable future, the company today announces that it has decided to initiate a process of winding down the business in the country,” said a statement published on the retailer’s website on Monday.
As part of the winding-down process, the clothing giant will “temporarily reopen physical stores for a limited period of time to sell remaining inventory,” it added.
H&M is the latest international retailer to announce its exit from sanctions-hit Russia. Last week, the local management of toymaker Lego confirmed the company would cease commercial activities in Russia amid supply uncertainty. Iconic Swedish furniture brand IKEA also decided to exit Russia due to supply-chain problems, media reported last month.
According to a recent report by the Wall Street Journal, global firms’ losses from anti-Russia sanctions have topped $59 billion and are expected to rise further. The outlet says nearly 1,000 Western businesses have reported plans to leave Russia or cut back operations in the country.
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