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Bloomberg
Sephora, the cosmetics retailer owned by LVMH, agreed to sell its Russian subsidiary, making it the latest brand to pull out of the country following its invasion of Ukraine.
LVMH is selling Sephora’s Russia business to the local general manager, the company said.
In early March, the group temporarily closed its Russian stores. Sephora’s exit comes as European and US sanctions on the country have made operations in Russia increasingly complex. It joins Nike which also said that it was leaving Russia.
“It sounds very rational indeed that Western companies in general will not go on paying rent and labour forever in Russia if operations cannot be resumed,†Luca Solca, an analyst at Sanford C Berstein, said.
The move will provide “continuity†for employees, according to Sephora, which employed 1,200 workers in 88 Russian stores and in operations to support the company’s website in the country.