H&M to pull out of Russia

The Swedish clothing giant Hennes & Mauritz (H&M), which had already suspended sales in Russia following the invasion of Ukraine, announced on Monday that it would gradually withdraw from this country, where it employs 6,000 people. .

• Read also: These brands are boycotting Russia

“After careful consideration, we see that it is impossible to continue our business in Russia given the situation,” Group Chief Executive Helena Helmersson said in a statement.

As part of its withdrawal from the Russian market, H&M plans to temporarily reopen its stores, which closed in early March a few days following the start of the invasion of Ukraine, in order to sell its remaining inventory.

Established in Russia since 2009, H&M has approximately 6,000 employees there.

“We are deeply saddened by the impact this will have on our colleagues and we are very grateful to them for all their hard work and dedication,” added Helena Helmersson.

According to the group, this withdrawal should cost it a total of 2 billion Swedish crowns (regarding 189 million euros), including a reduction in its liquidity of regarding 1 billion crowns.

The losses will be charged to the third quarter accounts, he said.

After the invasion of Ukraine, several large Swedish companies had temporarily ceased their activities in Russia.

The manufacturer Volvo had thus stopped sales and production at its plant in Kaluga, in central Russia, while the communications giant Ericsson had announced that it would cease deliveries to Russian customers.

The furniture giant Ikea has also decided to “reduce its activities in Russia and Belarus”, already suspended following the start of the offensive.