Lego Decides To Cease All Operations In Russia: Ends Partnership With Managers Of 81 Outlets, Lays Off Majority Of Employees In Moscow
JAKARTA - The world's largest Danish toy maker Lego said on Tuesday it would halt all of its operations in Russia, ending its staff work in Moscow and its partnership with a company that operates 81 stores in Russia.
A Lego representative said the company had decided to "indefinitely cease commercial operations in Russia, given the ongoing extensive disruption in the operating environment".
These include the termination of most of the Moscow-based team and a partnership with Inventive Retail Group which "operates 81 stores under the brand name", he added.
It is known that the company stopped shipping to Russia in March, after Moscow invaded Ukraine on February 24.
"We confirm the termination of the contract with Lego," a representative for the Inventive Retail Group said Tuesday.
"Our company will continue to work as an expert in the construction and educational toy categories," he continued.
In early May, Russia placed Lego products on a list of goods that can be imported without the consent of intellectual property owners, to bypass restrictions imposed over the conflict in Ukraine.
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Meanwhile, the list published by the Ministry of Industry and Trade includes Apple and Samsung smartphones, major car brands, game consoles, and spare parts used in various industries.
It is known that many Western brands have decided to leave Russia, trying to comply with sanctions, despite facing threats from the Kremlin that foreign-owned assets could be confiscated.