Multinationals Stop Doing Business in Russia
Source: Andreeew Hoang on Unsplash
McDonald's and Coca Cola halt business in Russia
Consumer giants including McDonald's, Coca-Cola and Starbucks have joined the list of firms halting business in Russia due to the invasion in Ukraine.
McDonald's said it was temporarily closing its roughly 850 restaurants in Russia, while Starbucks also said its 100 coffee shops would shut.
McDonald's said the move was a response to the "needless human suffering unfolding in Ukraine".
The company said it was "impossible to predict" when it would reopen.
"The conflict in Ukraine and the humanitarian crisis in Europe has caused unspeakable suffering to innocent people," chief executive Chris Kempczinski said in a memo to staff that was shared publicly.
"As a system, we join the world in condemning aggression and violence and praying for peace."
McDonald's said it would continue to pay its roughly 62,000 staff in Russia. The firm has also been experiencing supply chain issues there.
McDonald's, Coca-Cola and other companies have been under pressure to act as Russian violence against civilians has escalated.
#BoycottMcDonalds and #BoycottCocaCola were trending on Twitter on Monday and over the weekend respectively.
Dozens of well-known firms including Netflix and Levi's have already suspended sales or stopped providing services in Russia amid severe sanctions imposed by Western allies.
McDonald's established its presence in Moscow in 1990, as the Soviet Union was opening its economy, drawing thousands for its burgers and fries.
As tensions with the West increased in 2014 over Russia's annexation of Crimea, some of its restaurants were shut as part of an investigation into food standards, which many saw as politically motivated.
In 1990 I was in the queue when McDonald's opened its 1st restaurant in Moscow: when iron curtains were crumbling & Russia was embracing the West. Today McDonald's announced it is temporarily closing its 850 restaurants in Russia. Hugely symbolic.
— Steve Rosenberg (@BBCSteveR) March 8, 2022
McDonald's owns a majority of its stores in Russia. Combined with Ukraine, the restaurants account for about 9% of the firm's revenue and about 2% of global sales.
It has also temporarily closed its 108 restaurants in Ukraine, where it continues to pay salaries and has donated $5m to an employee assistance fund.
McDonald's said its Ronald McDonald House Charities would remain active in Ukraine and Russia.
Mr Kempczinski said the firm had made the decision over the last week. In addition to staff, the move will affect hundreds of suppliers and the millions of customers McDonald's serves in Russia each day.
The fast food chain joins a growing list of western brands to cut ties with Russia over its attack on Ukraine.
Coca-Cola on Tuesday said it was suspending operations in Russia, which accounted for roughly 2% of the firm's operating revenue and income. It also has a roughly 20% ownership stake in a bottling and distribution business in Russia.
Rival Pepsi is also halting operations in Russia, while Starbucks announced it would stop all business activity in the country, including shipments of Starbucks products.
The coffee chain's licensee in the country will temporarily shut more than 100 stores it operates there. The licensee, Kuwait-based Alshaya Group, will continue pay its roughly 2,000 employees, Starbucks said.
Others joining the backlash on Tuesday included Unilever, maker of Marmite, Dove beauty products and PG Tips among other brands, which said it had suspended trade with Russia and planned to halt its advertising and media spending and investments there.
It said it would continue to supply "everyday essential food and hygiene products" that are made in Russia.
L'Oreal, the world's biggest cosmetics company, is also shutting its stores and concessions in Russia and suspending online sales.
However, some firms have have defended plans to continue operating in Russia, including Uniqlo owner Tadashi Yanai, who told Japan's Nikkei newspaper that "clothing is a necessity of life".
Update:
Comments
I agree with all companies, no only multinationals, which went away from Russia. I think everybody has to protest about this crime against humanity. That is the worst thing that can happen among human beings. Why have to innocent people suffer? This Russia´s President is mad. He´s a creepy crawly. He is committing a genocide in Ukraine.
Companies said that don´t know when they came back to Russia. Me neither know it because terrorists thought that their war was going to last three days and the war lasts weeks already. Time passes by and have murdered innocent people during several weeks. Who is able to predict the finishing?
I don´t understand how there are people who can justify these crimes. We thought that the Second World War was the last, but we are going toward the Third unfortunately. Little by little two blocks of countries are forming and they can confront each other.
See you.
Who knows how this will end?
Putin totally misjudged the determination of the Ukranians to stand up to aggression and the West's response. He calculated that he could get away with this invasion just as he did with his takeover of Crimea in 2014.
I agree with all companies, not only multinationals, leaving Russia. I think everybody must protest about this crime against humanity. That is the worst thing that can happen among human beings. Why do innocent people have to suffer? Russia´s President is mad. He´s a creepy crawly. He is committing genocide in Ukraine.
Companies say that they don´t know when they will go back to Russia. I don't know either because these terrorists thought that their war was going to last three days and it has already lasted weeks. Time passes by and many innocent people have been murdered over several weeks. Who is able to predict how it will end?
I don´t understand how there are people who can justify these crimes. We thought that the Second World War was the last, but it seems that we are going toward the Third unfortunately. Little by little two blocks of countries are forming and they can confront each other.