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18 March 2022 Effects of the Ukraine War on the Fashion Industry

Putin's attack on Ukraine has far-reaching consequences for the people of Ukraine, Russia and Europe. The fashion industry is also responding to the war. Thus, many fashion companies stop their business activities in Russia. At the same time, sanctions against Putin are affecting textile supply chains and textile factories in Ukraine are being destroyed by attacks.

Disclaimer: This report is based on information we have gathered from various media outlets. You can also find a compilation in our Current news update. Please note that not all information is verifiable due to the current situation.

Effects on textile supply chains

The war in Ukraine and the consequent restrictions on air transport have direct consequences on textile supply chains. Closed airspace makes air freight more difficult. Flights from Central Europe to Japan, Korea and China are sometimes extended by several hours and can take up to 20% less cargo, reports Lufthansa Cargo. Container shipping companies also announced a temporary stop for all freight bookings to and from Russia. DB Schenker, the railway logistics subsidiary, is also discontinuing its shipments to Russia for the time being. This applies to land, air and sea freight.

In addition, textile factories are damaged or even destroyed by the attacks. For example, at the end of February in Kharkiv, where a rocket completely destroyed a factory building, or a major fire in a factory in Chernihiv in early March.

Fashion companies stop doing business in Russia

Since the beginning of the war, More and more fashion companies are restricting their business activities in Russia. In addition to Mango, Inditex, Asos, Levi Strauss and the PVH Group (Tommy Hilfiger & Calvin Klein), the textile alliance companies H&M, Adidas and Puma also stopped their activities in Russia. Hugo Boss announced on 2 March 2022 that it was continuing to do business in Russia in terms of responsibility for the 200 employees and their families, but a short time later the pause in business was announced. The Japanese fashion chain Uniqlo has also closed its stores in Russia. The textile alliance company Gerry Weber does not have his own business in Russia, but still delivers to Russia. This Fashion company New Yorker opened a new store in Moscow on 10 March 2022 and does not appear to be interested in suspending operations.

For the Ukrainian textile workers, the situation was already very precarious before the war. So they were paid only about one-fifth of a basic living wage. Due to the pandemic and now the war, the situation of the workers has deteriorated significantly.

Russia threatens to expropriate companies

FashionUnited reports that international companies are targeted by the Russian Prosecutor General's Office: The authority said that, among other things, compliance with obligations towards Russian workers and their rights should be assessed. The Russian The government is already threatening the expropriation of international companies.who suspend their business. According to the deputy head of the Russian Security Council, the Russian government is therefore working on steps to initiate a bankruptcy of the companies in Russia and then a nationalization of the property. Russian shopping centres should also be prepared to replace American and European brands with Turkish or Chinese ones.

Companies looking for ways to support

There are also reportedly donation and support campaigns for those affected by the war on the part of textile companies. Adidas donated, for example, according to a report by FashionUnited, 1 million euros to various aid agencies as well as a donation in kind to those in need in Ukraine, Poland, Moldova and Hungary. Other brands also show solidarity. Including those who do not have branches in Russia, e.g. the textile discounter Kik. Luxury brands such as Burberry and LVMH (Louis Vuitton) are also announcing donations.

Adidas says it wants to continue to pay employees and support them with transport and accommodation aids. The S.Oliver Group offers accommodation at its headquarters in Rottendorf for up to 75 Ukrainian refugees and their care. In addition, the company supports aid transports for children in Ukraine and donates clothing.

Fashion shows at the Fashion Week was used to express solidarity with Ukraine. That's how it played Giorgio Armani as a ‘sign of respect’ no music on his show Demna Gvasalia, chief designer of Balenciaga, opened his show with a quote from a 1917 poem ‘Long live Ukraine, for beauty, strength, truth and freedom’, illustrating the The Absurdity of Fashion Weeks with a cover letter stating: ‘At a time like this, fashion loses its relevance and its very raison d’être’.

Putin’s cruel war in Ukraine once again shows us the destructive forces that dictatorships can develop – and the importance of resistance, active protection of human rights and a strong civil society.