The pace of departure of Western companies from Russia is accelerating

American companies Sisko (Cisco Systems CSCO.O) and Nike (Nike NKE.N) plan to exit Russia completely, while the pace of departure of Western firms is accelerating.

The manufacturer of telecommunications equipment "Cisco" will shut down its operations in Russia and Belarus, the company announced. Nike is completely exiting Russia three months after suspending operations there, Reuters reported in a statement from the sports equipment manufacturer.

Foreign companies planning to leave Russia because of the war in Ukraine face the prospect of a new law being passed next week that allows Moscow to confiscate assets and impose fines. This has encouraged some companies to accelerate the departure.

"What was a trickle has turned into a flood," said Paul Musgrave, a political science professor at the University of Massachusetts, commenting on the latest round of companies announcing they are leaving.

In March, Sisko suspended business operations in Russia, including sales and services.

"We have now made the decision to begin the orderly shutdown of our business in Russia and Belarus," the company said in a statement yesterday, reported by Reuters.

Earlier this month, Cisco's rival IBM began shutting down operations in Russia, and Microsoft said it was significantly reducing its business in Russia.

The withdrawal of top tech firms is limiting access to key equipment for Russian companies and households. Now they may have to depend on older equipment and domestic alternatives.

Sisko announced that he offered relocation options for several hundred workers in Russia and Belarus, but did not specify which countries.

Musgrave said companies that plan to leave may have trouble coming back. "It offers an opportunity for domestic companies in some markets, but even more for brands from China and other countries, to make inroads," he said.

Sisko and Nike joined companies like McDonald's and Renault in pulling out of Russia altogether. It is expected that more companies will make such a decision in the coming weeks, ahead of the adoption of the new law.

The law allows Russia to appoint managers of companies owned by foreigners from "enemy" countries, who want to leave Russia as the conflict with Ukraine squeezes its economy.

The German company Adidas announced in March that it was closing stores in Russia and pausing online sales. Yesterday he announced that he has no plans to continue doing business in Russia.