We had previously reported on first, early measures taken by some sports companies such as Nike, Haglöfs and Mammut following Russia’s attack against Ukraine. In the meantime, other companies have joined, and industry groups and federations are also taking action. We have summarized the activities that we are aware of.
More companies withdraw from Russia
JD Sports also stopped trading in Russia back on March 4. In a statement to the London Stock Exchange, the company said it was “shocked and deeply concerned” by the incursion. It added that its sales in Russia represented less than 0.05 percent of its annual revenue.
Also on March 4, Canadian Tire Corporation announced that it would temporarily suspend its Helly Hansen operations in Russia, including its retail stores, e-commerce website, and product shipments. Canadian Tire stated that protecting the safety and well-being of its employees remains a priority.
Canada Goose (does not operate brick-and-mortar stores in the country) suspended all wholesale and e-commerce sales to Russia.
Puma also announced that it suspended operations at all of its stores last weekend but continues to pay its employees full salary. In addition, the company not only suspended its contract with the Russian Basketball Federation but also stopped product shipments to Russia and is supporting refugees, company employees and initiatives in Ukraine through its own Puma charity and product donations.
Adidas suspended the operations of its stores and e-commerce site in Russia until further notice but continues to pay its employees. “As a company, we strongly condemn any form of violence and stand in solidarity with those calling for peace. Our thoughts and prayers are with the Ukrainian people and everyone affected at this difficult time.” The company also donates a total of €1 million to refugee and children’s aid organizations, as well as clothing to Global Aid Network for distribution to people in need in Ukraine and neighboring countries. In addition, Adidas has suspended its partnership with the Russian Football Federation. ”We will continue to follow the situation closely and take future business decisions and action as needed, prioritizing our employee’s safety and support,” the company commented.
On March 7, Under Armour stopped its shipments to Russia. “We are partnering with humanitarian groups to provide what is needed for those displaced and have also stopped all shipments into our sales channels in Russia,” the brand commented.
Amer Sports has suspended all commercial activities in Russia as of March 8. This includes the group’s stores, e-commerce channels and shipments to wholesale partners. ”Our shipments to Russia have been on hold since Feb. 26. We remain closely connected to our colleagues in Russia to extend our support to the local team,” the company said in a statement. Amer Sports is also donating to UNICEF to support the many people and families impacted.
Crocs is pausing its DTC business, including e-commerce and retail operations, in Russia. The company has also paused the importation of goods into the country. The company will continue to pay corporate and retail staff within the country. Through Crocs Cares, the company has made a donation to UNICEF, a long-standing global partner. These funds will support UNICEF’s on-the-ground humanitarian efforts with a specific focus on addressing the needs of displaced children and families throughout the region.
Skechers USA has also temporarily suspended shipments to Russia. The company is also donating $250,000 in humanitarian aid to organizations on the ground in Ukraine and Poland, as well as matching employee donations up to an additional $250,000 to support the Ukrainian people. It has already made a donation to Tikva Children’s Home, an Odessa-based organization with whom the Company has had a long relationship, and is looking into additional contributions of shoes and socks to further support Ukraine’s citizens and refugees, which now total more than 2 million people.
Samsonite, the owner of Gregory Mountain Products, High Sierra and several other luggage brands, suspended all commercial activities in Russia, closing all 37 company-operated retail stores in Russia as well as its e-commerce sites. Business development activities and advertising in Russia have also been temporarily discontinued. The company said that group net sales of its Russian business have ranged from 1.5 to 2.0 percent of global sales annually over the last three years. Samsonite is also donating over 10,000 pieces of luggage and bags to support Ukrainian refugees and will also contribute US$1.0 million to support humanitarian relief efforts.
Amazon has suspended shipment of retail products to customers based in Russia and Belarus, and it will no longer be accepting new Russia and Belarus-based AWS customers and Amazon third-party sellers.
Authentic Brands Group (ABG) said in an online statement: “In light of Russia’s unrelenting attack on Ukraine and the escalating humanitarian crisis, we are working closely with our partners to suspend any brand operations in the country. In some cases, partner operations were suspended immediately. In other cases, due to contractual issues, the suspension of partner operations will take longer to come into effect. With the exception of Reebok, ABG does not have any branded store operations in Russia at this time. ABG is taking the necessary steps to immediately suspend operations of the Reebok stores and e-commerce in the country.”
After consulting with its more than 2,500 employees in Russia, where the company operates 60 stores and a web store, Decathlon decided to keep its stores open in the country until further notice to protect them from possible harmful action. The French retailer has closed its four stores in Ukraine but continues to pay its employees. In Poland, where the chain has 61 stores, it is offering work to Ukrainian refugees. Decathlon has also started to work with several NGOs to provide humanitarian aid, but a company spokesman said it was not ready to communicate details yet.
On March 9, Keen has renewed its initial commitment to support Ukrainian refugees by increasing its giving to €150,000 in funds and product. The company also stopped all sales of its product in Russia.
Help and calls for help from sports federations
After consultation with its board and as an immediate measure, WFSGI, in cooperation with the Federation of the European Sporting Goods Industry (FESI), the Association of Japan Sporting Goods Industries (JASPO), the Sport and Fitness Industry Association (SFIA) and the Taiwan Sporting Goods Manufacturers Association (TSMA), is going to donate to the United Nations Humanitarian Fund for Ukraine to provide urgent humanitarian assistance to those in need. WFSGI thanks and expresses its appreciation to its members who have already provided financial support and in-kind donations in various ways. At the same time, WFSGI encourages all members to donate to the Ukraine Humanitarian Fund by clicking on this link or to support humanitarian efforts through organizations of their choice in other ways. WFSGI is also identifying specific initiatives to support displaced athletes/federations from Ukraine that have been set up by international federations, NOCs, and national governing bodies and will provide this information to members in due course.
The European Outdoor Group (EOG) mobilized its members and the wider industry sector to aid Ukrainian civilians who are being affected by the war. “Our industry specializes in the design, manufacture, and production of kit that can help people in the harshest conditions, and we can step up now to provide assistance. This is not a marketing opportunity, it’s a call to action,“ EOG wrote in a statement, following the examples of the Polish Outdoor Group, footwear company Keen (through its Polish distributor) and the Scandinavian Outdoor Group.
Here you can read about other sanctions imposed by sports federations, which we had already summarized last week.
Situation of companies in Ukraine
Austrian company Fischer Sports has reported that its plant in Mukachevo, in the Transcarpathian region in the far west of Ukraine (Muka-Kiev: 750 km, Muka-Luhansk: 1,600 km), 40 km from the Hungarian border, is currently operationally affected only to the extent that Fischer employees are enrolling for military service and therefore only partial operation is possible in several departments. At the Berehove site, production of boot liners continues without interruptions, as there are no personnel bottlenecks. According to Fischer, the movement of goods is currently operating without restrictions. This means that materials can still be delivered to Mukachevo and finished products exported. The situation in Mukachevo remains calm with no warlike actions on the ground yet. Due to its geographical location in the far west of the country, it is assumed that this will continue to be the case for the time being. There has been an increased influx of refugees into the Transcarpathian region.
Support for the Ukrainian army from U.S. ammunition producers
U.S. ammunition dealers and manufacturers have offered to help the embattled Ukrainian forces by supplying ammunition and other defense equipment. This includes online ammunition retailer Ammo Inc. which has donated 1 million rounds of ammunition in response to Ukrainian President Volodymyr Zelenskyy’s call for help. Vista Outdoor also donated 1 million rounds of its Remington, Federal, CCI and Speer ammunition brands to the Ukrainian armed forces. Clarus has halted its shipments to Russia and vowed to assist Ukraine with supplies and equipment in its defense efforts. Any export of munitions by U.S. companies to a foreign government would have to be approved by the Biden administration.
In return, Russia stipulates that domestic companies can repay debts in rubles
While the international community is increasingly targeting the Russian government with a wide variety of sanctions at all levels following the invasion of Ukraine on February 24, the government has drawn up a list of “hostile” countries whose debts to Russian individuals and companies can be repaid in rubles. The list includes European Union member states, Australia, the U.K., Canada, Monaco, South Korea, the U.S., Switzerland and Japan. Under the new legislation, Russians can ask their bank to set up a special account in rubles in the name of a foreign creditor and pay the equivalent in rubles of a payment made in foreign currency based on the exchange rate set by the Central Bank of Russia. The temporary procedure applies to monthly payments of more than 10 million rubles (€67,400) in foreign currencies. Since mid-February, the ruble has depreciated by about 42 percent against the Euro.
Meanwhile, Visa, Mastercard and PayPal have cut off the use of their services in Russia.
Photo: Dovile Ramoskaite on Unsplash
This article was originally posted on March 8 and updated several times since.
