'Unpredictable future': H&M winding down operations in Russia

By Gokhan Ergocun

ISTANBUL (AA) - Swedish fashion retailer H&M, which paused its sales in Russia in March due to Moscow's war on Ukraine, has decided to wind down its operations in the country, it announced in a statement on Monday.

The group, which has run operations in Russia since 2009, said the exit was inevitable given “current operational challenges” and an “unpredictable future.”

The focus now is to ensure a responsible wind down of operations and support all colleagues concerned in the best possible way, it added.

"After careful consideration, we see it as impossible given the current situation to continue our business in Russia," said Helena Helmersson, the CEO of H&M. "We are deeply saddened about the impact this will have on our colleagues and very grateful for all their hard work and dedication."

As part of the exit process, the firm will open its stores for a temporary period to sell the remaining inventory in the country.

Besides sanctions, Russia’s "special military operation" on Ukraine has triggered an exodus of several foreign corporations, including Nordic companies.

Last month Swedish furniture giant IKEA said it was scaling down its business in Russia and Belarus, while Danish toymaker Lego has stopped commercial operations in Russia "indefinitely."