Fast Retailing

The owner of Uniqlo has made a U-turn and decided to suspend operations in Russia.

Fast Retailing said it faced " operational challenges" due to the " worsening of The Conflict situation" after Russia's invasion of Ukraine.

Earlier in the week it had said it would keep its Russian shops open, saying that clothing is a " necessity of life".

But it now joins a rush of global brands halting operations in Russia.

Fast Retailing said Uniqlo could " no longer proceed" in Russia despite its earlier pledge to provide clothing to people affected by conflict.

" Uniqlo has made everyday clothing available to the General Public in Russia.

" However, we have recently faced A Number of difficulties, including operational challenges and the worsening of The Conflict situation. For this reason, we will temporarily suspend our operations. "

Russia's invasion of Ukraine has led to major economic sanctions from The West and many companies calling a halt to trading or otherwise pulling back from Russia.

On Thursday, Rio Tinto became The First major mining company to cut ties with Russian businesses, and Japan's Sony and Nintendo suspended deliveries of gaming consoles.

Japanese construction machinery supplier Hitachi said it would stop exports and cease most operations in Russia except for vital electrical power facilities, following similar moves by US companies Caterpillar, 3M, Deere and Honeywell.

" We took multiple factors including the supply chain situation into account, " a Hitachi spokesperson said, echoing a statement from Caterpillar.

The Nikkei newspaper reported Hitachi had suspended operations in Russia following pressure from the Ukrainian government.

Entertainment giant Sony, which had already stopped releasing films in Russia, suspended The Launch of racing game " Gran Turismo 7".

Food companies Nestle, Mondelez, Procter & Gamble and Unilever have halted investment in Russia, but said they would continue providing essentials.

that it would.

The Fast Food giant has said that The Move , which includes continuing to pay its 62,000 staff and restaurant employees in Russia, will cost about $50m (£38m) a month.

" This is a really challenging and complex situation for a global company like us, " said chief financial officer Kevin Ozan.

A Number of other US food retailers, including Starbucks, PepsiCo and Coca-Cola Co, have said they will stop some or all business in Russia following the Ukraine invasion.

On Thursday, the Izvestia newspaper reported that The Russian government had put together a list of about 60 foreign companies that could be nationalised in response to the suspension of operations.

The newspaper said firms including Apple, Ikea, Microsoft, IBM, Shell, McDonald's, Porsche, Toyota and H& M could have their accounts and assets seized, and " external management" brought in,

It is unclear how the nationalised companies would be able to sell the products associated with those firms.

Source of news: bbc.com