The Russian partner of a western brand shares his story. “To say that I have worries about the future is a huge devaluation. Waking up every day knowing that you are a reluctant part of this nightmare is devastating. “I have been building my business for decades and now I see it collapsing. I have people who depend on me – not just my family, but also my employees, who will lose their source of income, their health insurance, their livelihood. One of my biggest concerns is their well-being. But of course, compared to the tragedy in Ukraine, all the business concerns seem insignificant. “Right now, retailers are still operating – but the biggest question we all have is what will happen in a few weeks or months when supplies run out. “The big brands operating in Russia, such as Ikea and Inditex [the owner of fashion chain Zara]they have a little more freedom – they can afford to temporarily suspend their work while continuing to pay their employees. “Companies operating under a license agreement face much tougher challenges. I’m afraid we will all have to make a difficult, strategic choice – either we will close our businesses permanently and sell our remaining stocks, or we will try to keep the business alive in the hope that the situation will improve and supplies can be repeated. “The first scenario presupposes a quick sale of the stock in an effort to salvage some of our investments and perhaps try to start a new business with it. The second scenario is more promising, but it would mean closing some again [sites] and employees to leave. “The biggest danger of all, of course, is that this second scenario presupposes the return of our western partners. If this does not happen, then we risk losing everything and being left with nothing. “Right now, I’m working on the second scenario and I hope things will return to normal. But I also know a lot of people who have already closed their businesses. “The only thing that can be considered positive is that our sales have increased, because people are realizing that stocks will be depleted. But it inevitably speeds up the timing of the scenario I have chosen, which means that our supplies may be depleted before normal business relations can resume. “Obviously, there are a lot of issues that companies with Western partners are facing right now – such as logistics and payments. [in the light of sanctions on banks and payment of Russian companies]. But the decision to suspend operations in Russia was for many brands both political and operational. Personally, I am in constant contact with my colleagues in Europe and they have supported me a lot. “We are still able to pay the staff in Russia, but we will have to close some stores soon, as stocks are declining and we will pay the affected employees severance pay. Subscribe to the daily Business Today email or follow the Guardian Business on Twitter at @BusinessDesk “I know several people who have been forced to close their businesses, sell their remaining stock and have either already left Russia or are planning to leave soon. “Of course [our customers and staff] they feel frustrated to some extent, because with so many brands suspending their activities, tens of thousands of people are at risk of losing their job, their source of income, their access to medical care. “They just do not know what is going to happen, whether they will be able to pay rent, pay off their credit card debt, take care of their families. “I do not think people are afraid that the products they are used to will not be available on their own, I think they are afraid they may no longer have a choice.”
