Lego to end all operations in Russia after earlier halt to deliveries

theguardian.com:

Lego is to cease all operations in Russia “indefinitely” after pausing deliveries to its 81 stores in the country in March.

The world’s largest toymaker said it was ending the employment of most of its staff in Moscow and terminating a partnership with Inventive Retail Group, the company that runs stores on its behalf in the country.

Lego said: “Given the continued extensive disruption in the operating environment, we have decided to indefinitely cease commercial operations in Russia.”

The Danish toymaker had already halted deliveries to Russia in March after the invasion of Ukraine and the imposition of sanctions by western countries in protest against the war.

In early May, Russia placed Lego products on a list of goods that could be imported without the agreement of the intellectual property owner in order to bypass restrictions imposed over the conflict in Ukraine.

Among the list published by the industry and commerce ministry were Apple and Samsung smartphones, major car brands, games consoles and spare parts used in various industries.

The measure came as most western companies have now ceased exports to Russia, while goods made in the country have been pulled from the shelves in British, US and European supermarkets.

Some prominent US and UK retail brands have said they are still operating in Russia because they have been unable to force independent franchise operators to close down.

Burger King’s owner, Restaurant Brands International, said its fast food restaurants were still operating with its brand because its former Russian partner had refused to shut.

UK retailer Marks & Spencer, which was in a similar situation, finally announced it was fully exiting Russia in May at a cost of £31m while McDonald’s sold its