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• Nike claims they are "deeply troubled by the devastating crisis in Ukraine"
• Supply constraints also cited as an issue in keeping stores open
In a slew of sanctions imposed on Russia, sneaker maker Nike (NYSE: NKE) and home furnishings retailer IKEA shut down its stores in Russia on Thursday.
Several companies have shut its operation in Russia due to political pressure, trade restrictions, and supply constraints since Russia’s invasion of Ukraine.
Nike Inc said, "Given the rapidly evolving situation, and the increasing challenges of operating our business, Nike will be pausing operations in Russia."
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The company added that it was "deeply troubled by the devastating crisis in Ukraine."
IKEA also said that it would close its stores in Russia and Belarus, which would affect 15,000 workers.
"The war has both a huge human impact and is resulting in serious disruptions to supply chain and trading conditions, which is why the company groups have decided to temporarily pause IKEA operations in Russia," IKEA said in a statement.
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The sanctions imposed on Russia, including closure of air space and trade restrictions, have resulted in the economy instability of the country. Russia’s currency rouble has recently plunged to record low levels, and the central bank has hiked interest rates.
Thousands of soldiers and Ukrainian civilians have been killed since Russian President Vladimir Putin attacked the European country. More than one million people have fled Ukraine.
Picture Credits: Reuters