McDonald’s, Coca-Cola and Starbucks halt Russian sales

Image source, Getty Images

McDonald's, Coca-Cola and Starbucks are among the firms that have stopped business in Russia due to the invasion in Ukraine.

McDonald's and Starbucks both said that they were temporarily closing their restaurants in Russia.

McDonald's said the move was in response to the need for human suffering in Ukraine.

It was not possible to predict when it would reopen.

Chris Kempczinski, the chief executive, said in a memo to staff that the conflict in Ukraine and the humanitarian crisis in Europe has caused suffering to innocent people.

We join the world in condemning aggression and violence and praying for peace.

McDonald's will continue to pay its 62,000 staff in Russia. Supply chain issues have been experienced by the firm.

McDonald's, Coca-Cola and other companies have been under pressure to act as Russian violence against civilians has increased.

On Monday and over the weekend, #BoycottMcDonalds and #Boycott Coca-Cola were popular.

Dozens of well-known firms, including Levi's, have stopped providing services in Russia because of sanctions imposed by Western allies.

Image source, Getty Images

McDonald's opened its Moscow location in 1990 as the Soviet Union was opening its economy.

As tensions with the West increased in the fall of 2014, some of its restaurants were shut down as part of an investigation into food standards, which many saw as politically motivated.

The closure carries symbolic weight and is likely to affect other firms.

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 has a majority of its stores in Russia. The restaurants make up 9% of the firm's revenue and 2% of global sales.

In order to continue to pay salaries and give money to an employee assistance fund, it has temporarily closed its restaurants in Ukraine.

Ronald McDonald House Charities would remain active in Russia and Ukraine.

Mr Kempczinski said that the firm had made a decision. Hundreds of suppliers and millions of customers will be affected by the move.

A growing number of western brands are cutting ties with Russia because of its attack on Ukraine.

Coca-Cola said on Tuesday that it was suspending operations in Russia, which accounted for 2% of the firm's operating revenue and income. It has an ownership stake in a Russian business.

Starbucks said it would stop all business activity in the country.

More than 100 stores in the country will be temporarily closed by the coffee chain. Starbucks said that the licensee, Kuwait-based Alshaya Group, will continue to pay its employees.

Other brands that joined the backlash on Tuesday included Dove, maker of Marmite, which said it had suspended trade with Russia and planned to halt its advertising and media spending there.

It said it would continue to supply essential food and hygiene products made in Russia.

The world's biggest cosmetics company, L'Oreal, is closing its stores and concessions in Russia and suspending online sales.

The production and sale of global soda brands in Russia was halted and capital investments were suspended due to the horrible events in Ukraine.

The company started operating in Russia during the Cold War and now employs 20,000 people there.

Ramon Laguarta, the boss of the food and beverage company, said that they must stay true to the humanitarian aspect of their business.