SHARE
COPY LINK

BUSINESS

Danish companies given permission to continue work with Russian subsidiaries

A number of Danish companies including Lego, Novo Nordisk and shoemaker Ecco have been given permission to continue exporting services such as IT support and legal consultancy to subsidiary companies in Russia.

Danish companies given permission to continue work with Russian subsidiaries
Danish shoe shop Ecco has continued to operate in Russia since the invasion of Ukraine in 2022. File photo: Mads Claus Rasmussen/Ritzau Scanpix

Ecco, Lego and Novo Nordisk are among 15 Danish companies given permission by the Danish Business Authority to continue providing services to subsidiary companies in Russia.

The companies were required to apply for permission from the Danish Business Authority, media Detailwatch reports based on a freedom of information request.

A sanction package adopted by the EU in June, the 14th since Russia invaded Ukraine in February 2022, forbade in principle companies in the EU from selling services to subsidiaries in Russia.

Lego stopped exporting its toys to Russia shortly after the invasion in early 2022 and suspended commercial activity in the country in July of that year after ending its contracts with stores.

The company told Detailwatch that it still has an office with a small number of staff in Moscow, which it uses to monitor the market.

“To protect our global brand and intellectual property, Lego has had a small office in Russia [since ceasing sales in 2022, ed.],” it stated.

Ecco has continued to operate in Russia despite the war and EU sanctions, citing considerations for its staff in the country. It told Detailwatch its operations were sanctions-compliant and confirmed it had received the Danish Business Authority permission to continue exporting services.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

LEGO

Denmark’s Lego stacks up profit as it gains market share

Lego, the world's largest toy maker, said on Wednesday that its net profit grew 16 percent in the first half of the year as it gained ground in a slowing market.

Denmark's Lego stacks up profit as it gains market share

The Danish company said its first-half sales rose 13 percent to 31 billion kroner ($4.6 billion) while net profit rose to 6 billion kroner.

“This growth has been driven by the Lego Group taking a higher share,” chief executive Niels Christiansen said in an interview with AFP.

The group, best known for its plastic bricks and whose name is a contraction of “play well” in Danish (“Leg godt”), launched around 300 new products during the first half, while continuing to see higher revenue from franchises such as Star Wars and Harry Potter.

The company also recently announced that it was forming a partnership with Nike to develop products and content together.

Sales rose the strongest in Europe and North America, but were slower in China.

“We will continue to build the Lego brand in China, to open stores. The potential is there,” Christiansen said.

The company is controlled by the descendants of its founder and is not quoted on the stock market.

SHOW COMMENTS