Only 10% global brands actually exit Russia — a look at those remaining

The New Voice of Ukraine
·3 min read
Only 372 or 10% of global companies have completely withdrawn from the Russian market
Only 372 or 10% of global companies have completely withdrawn from the Russian market

Despite loud promises at the start of the Russian full-scale invasion in Ukraine, only 372, or 10%, of global companies have completely left the Russian market, the Kyiv School of Economics (KSE) reported on March 7.

Eighteen more were added to this list in February 2024. These include Inditex, which owns the brands Zara, Massimo Dutti, Bershka, Oysho, Pull & Bear, and Stradivarius, KSE Institute monitoring results suggest.

Read also: Zara’s owner Inditex set to reopen stores in Ukraine after two-year hiatus

KSE Institute experts identified several other international companies besides Inditex that have completely left the Russian market.

Brands that left Russia through liquidation include:

  • Drees & Sommer

  • GE Digital

  • Gett

  • Idexx Labs

  • Lindt & Sprüngli

  • ON Semiconductor

Others, which left Russia through selling their assets include:

  • AGC

  • Equifax

  • Hempel

  • Holcim Group

  • Hydroscand

  • Ikea (Invest Plus becomes the new founder of the organization, but Ikea continued to register its trademark for one of four applications until August 2033)

  • LeasePlan

  • Leoni AG

  • Polymetal

  • Sephora

  • Wienerberger

Read also: EU drafts mini-sanctions against Russia for ‘symbolic’ war anniversary, no major items included

Leroy Merlin and Playrix had their statuses changed to "remaining," technically resulting in 18 exits identified, though the actual difference is 16. During the investigation, Leroy Merlin, despite announcing the sale of its business in Russia, was revealed to have signed only a formal agreement without changing its CEO and still actively cooperates with Russian state entities, including the Defense Ministry and the Ministry of Internal Affairs. The company continued to register trademarks and brands with Rospatent, the Russian governmental agency in charge of intellectual property, until 2031.

Playrix, despite liquidation processes, retains the former owner and has been renamed ITdev Lab. In February, KSE experts combined groups of companies with the statuses "waiting" and "remaining", since more than enough time has passed since Feb. 24, 2022 to make a decision on a final exit from Russia.

Zara reportedly plans to reopen stores in Ukraine that closed after the start of the Russian invasion. The Spanish retailer Inditex, the owner of Zara, informed local landlords about plans to reopen in early April 2024, starting with 50 stores out of more than 80. Inditex has already informed its landlords that it will start reopening with 20 stores, including in shopping centers in Kyiv.

Some Ukrainian employees have already been sent to Poland for training to prepare for their return to work.

Before the full-scale Russian invasion, there were 84 stores of Inditex brands in Ukraine: Zara, Pull & Bear, Massimo Dutti, and Bershka. All of them closed on Feb. 24, 2022, and have not been working since then. The company retained lease agreements with landlords and continued to pay salaries to its Ukrainian employees.

Read also: PepsiCo bans Ukraine references in ads to stay in lucrative Russian market — media

Inditex left the Russian market but didn't rule out a return if the situation changes. Russian media reported plans for the return of some stores as early as 2023, with changed names for brands like Bershka, Pull&Bear, and Zara.

In April 2023, news emerged about the return of Bershka, Zara, and Pull&Bear stores to Russia. However, these well-known brands opted for a name change. Russian media reported that Bershka would come back to Russia under the name Ecru, Pull&Bear would be renamed DUB, and Zara would adopt the name Maag. Reports also mentioned that these companies were actively recruiting staff for their reopened stores.

Ukraine’s Foreign Affairs Ministry confirmed the return of global brands to Ukraine on March 9.

Ukraine’s National Agency on Corruption Prevention reportedly invited CEOs of international companies still operating in Russia to Ukraine.

Find a list of international sponsors of the war here.

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