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Daily Mirror
Daily Mirror
Business
Emma Munbodh

Uniqlo says it has no plans to close stores in Russia because clothes are a 'necessity'

The owner of Uniqlo has said the chain has no plans to close stores in Russia as President Putin continues to inflict violence on Ukraine.

The Japanese fashion giant's boss defended its decision to keep all Russian shops in operation, saying that clothing is a "necessity of life".

Uniqlo has 49 stores in Russia and while it will "monitor the situation" it has no plans to suspend trading.

A number of Western firms such as Zara and H&M have stopped trading in Russia in the past fortnight.

But Fast Retailing's founder Tadashi Yanai said Russia's people "have the same right to live as we do".

Mr Yanai told Japan's Nikkei newspaper: "There should never be war. Every country should oppose it".

But he said: "Clothing is a necessity of life. The people of Russia have the same right to live as we do."

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Beer giant Heineken ceased operations in Russia this morning (Reuters)

Beer giant Heineken and cigarette maker Imperial Brands became the latest to cut ties with Russia this morning, amid a corporate exodus from the country in response to the Ukraine conflict.

Bristol-headquartered Imperial - the group behind brands including JPS and Davidoff cigarettes - said it was pausing production at its factory in Volgograd, alongside all sales and marketing activity in the country in a move impacting around 1,000 employees.

Russia and Ukraine together accounted for 2% of Imperial's net revenues last year, or around £656million.

It came just hours after Dutch brewer Heineken said it was stopping the production and sale of its own brand beer in Russia.

The firm is also reviewing its strategic options for the future of the business in Russia, where it has had operations for 20 years.

The owner of KFC and Pizza Hut, Yum! Brands, had earlier revealed it was pausing 70 KFC company-owned restaurants in Russia and was due to suspend all 50 Pizza Hut franchise outlets.

McDonald’s finally bowed to pressure on Tuesday night after social media users threatened to boycott the chain's UK branches (AFP via Getty Images)

Babycare retailer Mothercare also separately announced on Wednesday that it has paused all its business in Russia, which accounts for up to a quarter of its worldwide retail sales, sending shares plunging by more than a quarter at one stage.

It followed announcements late on Tuesday by Coca-Cola, Starbucks and McDonald's that they were all suspending operations in Russia amid a growing consumer backlash and threats of boycotts for failing to pull out of Russia.

But a raft of global corporate giants have remained tight-lipped on their Russian operations, despite mounting pressure from consumers.

Brands including Cadbury owner Mondelez, Durex to Dettol maker Reckitt and Dunhill and Lucky Strike maker British American Tobacco (BAT) are among those continuing to trade in the country.

BAT's Russia business employs around 2,500 staff across its headquarters in Moscow, 75 regional offices and a factory in St Petersburg.

But it has so far said only that it "operates in compliance with all applicable local and international legislative requirements and will adhere to any applicable sanction regimes".

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