Levi Temporarily Halts Commercial Operations in Russia, Donating Thousands of Dollars to Ukraine

Levi Temporarily Halts Commercial Operations in Russia, Donating Thousands of Dollars to Ukraine
The label of a Levi's denim jacket of U.S. company Levi Strauss is photographed at a denim store in Frankfurt, Germany, on March 20, 2016. (Kai Pfaffenbach/Reuters)
Katabella Roberts
3/8/2022
Updated:
3/8/2022

Clothes maker Levi Strauss & Co. announced on Monday that it is temporarily suspending commercial operations in Russia in response to the “ongoing humanitarian crisis in Ukraine.”

The San Franciso headquartered company also said it was donating thousands of dollars in humanitarian aid to help Ukrainian refugees who have been forced to flee the country.

In a press release, the clothing company—famous for its Levi’s brand of denim jeans—said it is temporarily suspending its commercial operations in the country, including any new investments.

Roughly 4 percent of the company’s net revenue in 2021 originated in Eastern Europe, of which half was related to Russia, Levi said.

“But any business considerations are clearly secondary to the human suffering experienced by so many. The LS&Co. community continues to be saddened by the devastating conflict in Ukraine and our thoughts are with all of those who have been affected, including our employees, partners, and their loved ones,” the company said.

Levi Strauss said it will continue to support its employees, partners, and their families who are affected by the decision.

The apparel company also announced it is donating more than $300,000 to nonprofit organizations and, together with the Levi Strauss Foundation pledged $200,000 to the International Rescue Committee, which it said is helping to support those who have been displaced due to the Russian invasion.

The company’s Beyond Yoga brand is also giving $100,000 to the international humanitarian organization CARE.

In addition, the company said it is offering employees a 2-to-1 match of up to $200,000, for donations to a string of organizations “committed to ensuring that the most vulnerable communities get the support they need, including several that are ensuring discrimination doesn’t occur at border crossings.”

The company said it is also working with its licensee partners to donate jackets, backpacks, and other warm clothing to Ukrainian refugees who have been forced to flee their country.

Refugees, mostly women with children, arrive at the border crossing in Medyka, Poland, on March 5, 2022. (AP Photo/Visar Kryeziu)
Refugees, mostly women with children, arrive at the border crossing in Medyka, Poland, on March 5, 2022. (AP Photo/Visar Kryeziu)
Once, Levi’s blue jeans were a symbol of freedom and Western capitalism in Soviet-occupied East Germany. Hundreds of young people attended the falling of the Berlin wall, marking the end of the Cold War, wearing the garment.

Levi is just one of many companies that have been severing ties with Russia in the wake of its invasion of neighboring Ukraine, including Microsoft and Apple, a string of social media platforms, and credit card operators Visa and Mastercard.

Dozens more Russian products have been removed from supermarket shelves both in the United States and the rest of the world.

For now, the global boycott appears to be a largely symbolic gesture and it is unclear what, if any, financial impact it will have on Russia.

A 2013 boycott of Russian products in retaliation to a Russian trade embargo levied against neighboring Ukraine was halted only to be resumed one later when the Russian military invaded and annexed Crimea.

That boycott resulted in the sales of Russian manufactured goods dropping by 35 percent to 50 percent according to local Russian reports.