Cisco Systems (CSCO.O) and Nike (NKE.N), both American companies, have told private sources that they plan to leave Russia for good. This comes as more and more Western companies are leaving Russia.
Cisco, a company that makes communication tools, said it would stop doing business in Russia and Belarus. Nike (NKE.N), a company that makes sportswear, said that it is leaving the country for good. This comes three months after it stopped doing business there.
In the coming weeks, a new law that gives Moscow the power to seize assets and impose criminal fines could be passed. This would make it harder for foreign businesses to leave Russia because of the war in Ukraine. Because of this, some businesses have rushed to close down.
Paul Musgrave, a political science professor at the University of Massachusetts, said about the latest round of companies leaving: “What was a trickle is now a flood.”
In March, Cisco stopped selling products and providing services in Russia.
“We’ve decided to end our business in Russia and Belarus in a planned way,” the company said in an emailed statement.
Microsoft announced significant cuts to its Russian operations this month, at the same time that Cisco competitor International Business Machines Corp (IBM.N) began winding down its operations there.
Leading tech companies like Cisco, IBM, and Microsoft have left the country, making it harder for Russian homes and businesses to get the equipment they need. They might now have to rely on old technology and things they can make at home.
