LONDON: McDonald's Corp and Starbucks Corp are temporarily closing hundreds of restaurants in Russia, with Coca-Cola and Pepsi among the latest Western companies to pause operations in the country after it moved troops into Ukraine.
PepsiCo, the soft-drink and snack maker, will suspend all advertising in Russia and stop the sale of its drinks brands, while rival Coca-Cola said it will suspend its business there.
Fast-food chain McDonald's said it would go on paying salaries to its 62,000 employees in Russia.
“McDonald’s has decided to temporarily close all our restaurants in Russia and pause all operations in the market,” the fast-food giant announced.
While lamenting the impact on 62,000 people employed at its 847 restaurants in Russia, the company said, “we cannot ignore the needless human suffering unfolding in Ukraine”.
The closure of McDonald's restaurants also carry symbolic importance in Russia, where the first location to open, in central Moscow's Pushkin Square in 1990, became a symbol of flourishing American capitalism as the Soviet Union fell.
Coffee chain Starbucks also said yesterday it is suspending all business activity in Russia, including shipment of its products and cafes run by a licensee.
“We have decided to suspend all business activity in Russia, including shipment of all Starbucks products,” noted the firm, which previously said it has 130 stores in Russia that are wholly owned and operated by a licensed partner.
Starbucks CEO Kevin Johnson wrote that its licensed partner “has agreed to immediately pause store operations and will provide support to the nearly 2,000 partners in Russia who depend on Starbucks for their livelihood”.
Coca-Cola said its business in Russia and Ukraine contributed about 1% to 2% of the company's net operating revenue in 2021.
It said in a statement: “Our hearts are with the people who are enduring unconscionable effects from these tragic events in Ukraine.“
PepsiCo, whose colas were one of the few Western products allowed in the Soviet Union prior to its collapse, said: “Given the horrific events occurring in Ukraine we are announcing the suspension of the sale of Pepsi-Cola, and our global beverage brands in Russia, including 7Up and Mirinda.“
It said it would continue to sell daily essentials, such as milk and other dairy offerings, baby formula and baby food in Russia. – Reuters, AFP