Proudly sponsored by

Lego ceases Russian sales, ends contract with store operator

Lego already in March stopped shipments of products after Russia invaded Ukraine. But the Danish toymaker may not be able to keep its products out of the country. 
Image: Bloomberg

Lego Group, the world’s largest toymaker, said it’s stopping sales in Russia and has terminated its contract with the operator of 81 Lego stores in the country.

Lego has decided to “indefinitely cease commercial operations in Russia,” the company said in an email. That includes firing most of its Moscow-based employees and ending its partnership with Inventive Retail Group, which owned and operated the stores on Lego’s behalf.

Lego already in March stopped shipments of products after Russia invaded Ukraine. But the Danish toymaker may not be able to keep its products out of the country.

Besides cheap credit and subsidies for struggling industries, the Russian government has also responded to sanctions by canceling customs duties on numerous products and legalising gray market sales, also known as parallel imports.

According to a July 11 statement on its website, Russia’s trade ministry approved changes to the list of products for parallel import that “mainly” affect “products of Siemens, BMW and LEGO brands, which previously announced their complete exit from the Russian market.”

The news was first reported by Reuters.

© 2022 Bloomberg

COMMENTS   0

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Subscribe to our mailing list

* indicates required
Moneyweb newsletters

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: