05 March 2022, Mumbai:
The world's leading luxury brands said on Friday that they planned to temporarily close stores and pause business operations in Russia.
Birkin bag maker Hermes and Cartier owner Richemont were the first firms to announce such moves, followed by LVMH (LVMH.PA), Kering (PRTP.PA), and Chanel.
Doing business in Russia has become complex since Russia's invasion of Ukraine, which prompted the United States, Britain, and the European Union to impose sweeping sanctions.
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"Given our increasing concerns about the current situation, the growing uncertainty, and the complexity to operate, Chanel decided to temporarily pause its business in Russia," the French luxury fashion house said in a LinkedIn post.
Luxury giant LVMH, which owns such brands as Christian Dior, Givenchy, Kenzo, TAG Heuer, and Bulgari among others, will close its 124 boutiques in Russia from Sunday but will continue to pay the salaries for its 3,500 employees in the country, a spokesperson told Reuters.
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CREDITS: Reuters.
