ADA TOWNSHIP, Mich. (WOOD) — Ada-based Amway announced it has decided to start winding down its operations in Russia.
Starting July 1, Amway said it would begin winding down its operations in Russia. The company noted it would support those affected by its decision while also meeting its contractual and statutory obligations, according to a Wednesday news release.
The company said that this is the first time in Amway’s 63-year history that it has left a market.
“What makes this such a heartbreaking decision is our enduring belief in offering an economic opportunity, meant for everyone. After exploring all possible options, we have reached a point where economic, technological, organizational, and operational circumstances have made it impossible for us to operate in Russia,” the release said.
Amway’s 17-year presence in Russia is substantial. About a half-million Russians have Amway distributorship, which generates about $200 million in yearly sales. In March, Amway announced it suspended product imports from Russia.
Benton Harbor-based Whirlpool Corp. also announced it’s no longer doing business in Russia, confirming to News 8 in a statement that it had reached an agreement to sell its operations and sites in Russia, Kazakhstan “and other select CIS countries” to Istanbul-based Arçelik A.Ş.
“The Company is taking this action given the current operating environment in Russia and has concluded the agreement to be the best course of action for its employees, shareholders and overall business,” Whirlpool stated.
The sale was expected to be finalized in the third quarter this year.