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Lego pulls out of Russia ‘indefinitely’ and closes 81 stores

The company will let go of most of its Moscow staff

Maryam Zakir-Hussain
Wednesday 13 July 2022 06:12 EDT
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Lego pulls out of Russia ‘indefinitely’ and closes 81 stores
Lego pulls out of Russia ‘indefinitely’ and closes 81 stores (Getty Images)

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Lego has made the decision to close its shops in Russia “indefinitely” following Vladmir Putin’s launch of war on Ukraine.

The Danish toy company had already ended its sales into Russia in February, shortly after the invasion began.

But on 12 July, Lego cut off its partnership with Inventive Retail Group- a local company which runs many of the toy giant’s stores.

In a statement released on Tuesday, the company said: “The Lego Group paused shipments to Russia in March. Given the continued extensive disruption in the operating environment, we have decided to indefinitely cease commercial operations in Russia.

“This includes ending employment for most of our Moscow-based team and our partnership with Inventive Retail Group who owned and operated 81 stores on the brand’s behalf.”

A local company runs Lego’s Russia stories
A local company runs Lego’s Russia stories (PA)

Lego’s decision to close stores is the latest in a wave of economic and social sanctions that have been imposed by companies across worldwide industries since Putin invaded Ukraine.

Joining them in the commercial boycott of Russia until further notice are such diverse brands as Yorkshire Tea, Uniqlo, Mothercare, Heineken and McDonald’’s.

Britain started its sanctions programme by imposing financial restrictions on 386 members of the Duma, Russia’s lower house of parliament, after they voted to recognise the independence of Ukraine’s breakaway regions of Luhansk and Donetsk, the prelude to the invasion.

Much of Russia’s financial system has also been hit by UK sanctions, including its largest bank, Sberbank, and the Russian Direct Investment Fund, the country’s sovereign wealth fund.

Follow the latest from Russia Ukraine news here.

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