Uniqlo to leave Russia, clearing path for sale.

Japanese brand Uniqlo has announced that it will depart from Russia after suspending its operation there last year, opening the path for the sale of the business, the Daily Izvestia reported.

Fast Retailing, the owner of Uniqlo, suspended the clothing brand’s operations in Russia in March of 2022, joining other international companies, after Moscow launched its attack on Ukraine.

According to Deputy Minister of Industry and Trade Viktor Yevtukhov, the company has made a decision to completely leave Russia but has not yet submitted an application to the government, meaning that the chain has no buyer yet, Izvestia reported on Tuesday.

“I think they can offer potential buyers their business model,” Izvestia cited Yevtukhov as saying. “The Japanese retailer will be able to offer … lease agreements, popular points of sale with the good buyers traffic and equipment.”

Fast Retailing did not immediately respond to a Reuters request for comment.

Tadashi Yanai, the founder of Fast Retailing, had previously stated that Uniqlo was operating 50 stores in Russia.

Reporting by Lidia Kelly and Rocky Swift; Editing by Muralikumar Anantharaman

Background

Uniqlo’s suspension of its Russian operation was part of a wider trend of international companies pulling out of Russia after the country launched its attack on Ukraine, calling it a “special military operation”.

According to Reuters, several international companies, including Sony and Nintendo, have halted their console sales in Russia, and mining company Rio Tinto has cut its ties with the country.