Zara, Paypal and Samsung suspend business in Russia over Ukraine invasion

Zara, Paypal and Samsung are the latest international firms to suspend trading in Russia after it invaded Ukraine.

The clothes retailer’s owner, Inditex, will shut all 502 stores of its eight brands, including Bershka, Stradivarius and Oysho, from Sunday.

Payment giant Paypal cited “violent military aggression in Ukraine” as the reason to shut down its services.

Samsung – Russia’s top supplier of smartphones – is suspending shipments over “geopolitical developments”.

Other global brands, including Apple, H&M and Ikea, have already stopped selling in Russia.

The clothes store closures are expected to hit more than 9,000 of Inditex’s employees who work in Russia.

The Spanish-owned business told the BBC it was drawing up a plan to support them.

“In the current circumstances Inditex cannot guarantee the continuity of the operations and commercial conditions in the Russian Federation and temporarily suspends its activity,” the Zara owner company said.

Adam Cochrane, an analyst at Deutsche Bank Research, told Reuters that logistical difficulties and the weakness in the rouble – resulting in large price increases for the Russian consumer – would make “operations difficult for all retailers importing into Russia”.

Russians rush to buy furniture and household goods in Ikea before the store closes in St Petersburg

Other brands that have halted their business in Russia include:

  • Apple
  • Ikea
  • H&M
  • Boohoo
  • Rolls Royce
  • Burberry
  • Jaguar Land Rover (JLR)
  • General Motors
  • Aston Martin
  • Netflix

Online payments company Paypal has also shut down services in Russia but said it would support withdrawals “for a period of time”.

This would ensure that account balances were dispersed “in line with applicable laws and regulations”, it said.

The Ukrainian government had been calling on Paypal to quit Russia and help its officials with fundraising.

Source: BBC

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