Cisco, Nike Quit Russia; Moscow Threatens Asset Seizures

Cisco Systems and Nike plan to totally abandon Russia, the two businesses informed Reuters' Matt Scuffham and Richa Naidu on Thursday (Friday, June 24, 2022, in Manila), as the pace of Western firms leaving accelerates and Moscow considers a sweeping acquisition of all exiting companies' assets.

Photo Insert: Foreign firms wishing to leave Russia due to the Ukraine conflict face the threat of a new law being passed in the coming weeks that will empower Moscow to seize assets and levy criminal penalties.

Cisco has announced that it will phase out its operations in Russia and Belarus. Nike is withdrawing completely from Russia, three months after suspending business there.

Foreign firms wishing to leave Russia due to the Ukraine conflict face the threat of a new law being passed in the coming weeks that will empower Moscow to seize assets and levy criminal penalties. This has prompted several enterprises to hurry their exit.

"What was a trickle is becoming a torrent," said Paul Musgrave, a political science professor at the University of Massachusetts, in response to the current round of corporations announcing their departure. Cisco ceased operations in Russia, including sales and services, in March.

"We have now made the decision to begin an orderly wind-down of our business in Russia and Belarus," it said in an emailed statement on Thursday.

Cisco's rival International Business Machines Corp. (IBM) began winding down its business in Russia earlier this month, and Microsoft announced significant cuts to its Russian operations.

The removal of leading technology giants such as Cisco, IBM, and Microsoft restricts Russian businesses and households' access to crucial equipment. They may now be forced to rely on outdated equipment and domestic alternatives.

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