Since Russia’s declaration of President Vladimir Putin’s invasion of Ukraine at the end of February, it has been days. Since then, air attacks have continued in major Ukrainian cities, including Kyiv. As foreign nationals evacuate, residents have been rushing to bomb shelters. Many businesses in Russia are closing their doors as the crisis continues. PepsiCo, McDonald’s, and Starbucks are just a few of the companies closing their doors in Russia, the aggressor in this ongoing war. These companies are taking a collective stand against the invasion and shutting down their operations.
Amidst sanctions from the United States and the European Union and a plummeting currency, companies are pulling out of Russia left and right. Pepsi has already closed 57 stores in the country, and McDonald’s is shutting down its restaurants in Crimea. Starbucks has said it may follow suit. Some experts say that the situation in Russia is only going to get worse, and businesses would be wise to pull out now.
PepsiCo (McDonald’s), Starbucks, and Coca-Cola had a strong presence in Russia. They are now closing many outlets. McDonald’s, PepsiCo, Starbucks, and Coca-Cola have a strong presence in Russia. In a Tweet, McDonald’s announced that they would temporarily close all Russian restaurants. Some have speculated that the moves are in protest of Russia’s involvement in the Ukraine conflict, while others believe that the closures are due to tightened Russian regulations.
Since the Russia-Ukraine conflict began, several Western companies have pulled out of the Russian market. Pepsi, McDonald’s, and Starbucks are among the latest to leave amid concerns over the country’s deteriorating economic conditions and rising political tensions. This comes as a major blow to Russia’s already struggling economy, which has been battered by sanctions from the West.
Attached is a statement that states, “In the 30+ years that McDonald’s has been operating in Russia, we’ve become a vital part of all 850 communities in the country.” Our values require us to recognize the suffering of the people in Ukraine.
Starbucks and coffee shop chain Starbucks have made a similar decision to halt operations in Russia because of the Ukraine crisis. Kevin Johnson, President, and CEO of the company said that the company condemns Russia’s attack on Ukraine. His heart goes out to those who have been affected. We will continue to follow the tragic events unfolding and today we have decided that all business activity in Russia including a shipment of Starbucks products, will be suspended.
PepsiCo did the same, temporarily suspending sales of their beverage and making investments in Russia. Ramon Laguarta, a CEO, sent a letter to associates stating that “Given recent events in Ukraine, we are suspending the sale of Pepsi-Cola” and other global beverage brands in Russia such as 7Up and Mirinda. We will also suspend capital investments, all advertising and promotion activities in Russia.
Coca-Cola is also said to have shut down operations in the country.