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Toymaking Giant "Lego" Leaves Russia

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Toymaking Giant "Lego" Leaves Russia
13 Jul 2022
3 min read

News Synopsis

Lego, a giant Danish toy-making company, announced that it would cease operations in Russia indefinitely because of "continued extensive disruption". After the invasion of Ukraine, the firm stopped shipping products to Russia in March. However, its shops remained open despite being closed by most other retailers.

Lego announced that it will end its partnership and operation of 81 Lego-branded shops with Inventive Retail Group.It didn't mention Russia's invasion in Ukraine as a reason for Russia's withdrawal. Lego spokeswoman said that the Lego Group had stopped shipping to Russia in March and also stopped all commercial activity. This led to almost all of its employees being placed on extended leave.

According to the company, it had cut most of its Moscow-based staff and "provided 70 employees financial packages to help them in their search for new opportunities". Lego is just one of the few Western brands that managed to remain in Russia following the Kremlin attack on Ukraine on February 24, 2014.

Some companies sold products in Russia through franchisees and had to end complicated partnerships with third-party firms. McDonald's announced that it was closing its Russian locations in May. These sites were later sold to a local business. They were called " de-arched" but were renamed "Tasty and That's It".

Lego, unlike many other companies that have condemned Russia's actions, has chosen not to comment directly on its actions. Lego stated in March that it was thinking of all families and children who are suffering from the conflict in Ukraine. A few years back, the Danish company caused a stir when it refused to sell a large order of plastic bricks to Ai Weiwei.

TWN Special