Lego closes Russia business indefinitely, lays off 90 staff

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Lego bricks emblem is observed at a toy retail store in Bonn, Germany, September 5, 2017. REUTERS/Wolfgang Rattay

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  • This written content was manufactured in Russia where by the law restricts coverage of Russian military functions in Ukraine.

MOSCOW/LONDON, July 12 (Reuters) – Lego is closing its enterprise in Russia indefinitely and laying off its 90 Moscow-primarily based workers, owing to “in depth disruption” in the state, the Danish toymaker explained on Tuesday.

Lego has terminated its agreement with franchisee Creative Retail Team (IRG) which owned and operated 81 merchants on Lego’s behalf.

IRG, which also operated stores in Russia for Western models such as Nike and Samsung, said before on Tuesday that the agreement with Lego experienced been terminated.

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“LEGO Team has determined to indefinitely stop business functions in Russia provided the ongoing intensive disruption in the running surroundings,” a Lego spokesperson claimed.

An IRG spokesperson reported: “Our organization will keep on to do the job as an skilled in the toy style and design and improvement category.”

Lego paused shipments to Russia in March and mentioned in June it was briefly freezing some merchants thanks to source troubles. study additional

The Russian variation of Inc. Journal described before on Tuesday that Lego was stopping professional activities in Russia indefinitely and breaking off its deal with IRG.

Businesses which include Nike (NKE.N) and Cisco (CSCO.O) have introduced their departures from Russia in latest weeks as the speed of Western companies leaving accelerates immediately after Russia sent troops into Ukraine in February in what it conditions a “distinctive procedure”. study more

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Reporting by Reuters and Richa Naidu in London Modifying by Jan Harvey and Bernadette Baum

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