If the West imposes stringent economic sanctions on Russia for its troops' occupation in Ukraine, Western consumer product companies worry that Russia will take action against them.
Herbert Hainer, CEO of Adidas, said Wednesday that the German sports apparel giant "cannot ignore the significant weakness of the Russian ruble since the beginning of the year as well as the current uncertainty in the region, both of which have had a considerable risk to our results,"
CNBC reports.
The company says its plans to open new stores in the country are now under review.
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Russian parliament member Andrei Klishas has said that if the West imposes sanctions, parliament could pass a law empowering the government to confiscate Western assets in the country, CNBC reports.
To be sure, Russia historically has let privately-owned consumer products companies operate in the country without interference, Chris Osborne, CEO of Russian investment bank Troika Dialog's U.S. division, told CNBC Digital.
Still, Western companies may already be pressuring their governments not to impose sanctions. "Russia is a very profitable market," Osborne said. "I imagine they . . . will be lobbying furiously to avoid this."
Sen. Chris Murphy, D-Conn., who is chairman of the Senate's Europe subcommittee, says that if the United States imposes sanctions, it must get Europe to join in if they are to be effective.
"Unilateral U.S. sanctions against Russia are not going to have much of an effect if Europe remains a haven for Russian banks and Russian oligarchs to stash and invest their money,"
he told Reuters.
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