War in Ukraine: McDonald's, Starbucks, and Coca-Cola stop sales in Russia
Written byTimes Magazine
Consumer giants including McDonald's, Coca-Cola, and Starbucks have joined the list of companies that have suspended operations in Russia due to the aggression of Ukraine.
McDonald's said it would temporarily close some 850 restaurants in Russia, while Starbucks said 100 of its cafes would close. On Wednesday, Heineken halted the production and sale of beer in Russia. And Mothercare said all stores in Russia, which account for 20% to 25% of global sales, had closed.
The move by McDonald's, Coca-Cola, and Starbucks comes amid growing pressure on companies to act over the war in Ukraine. However, the three companies said they would continue to pay their employees.
Anna MacDonald, fund manager at Amati Global Investors, told BBC Radio 4 Today that companies are joining the wave of companies leaving Russia because "shareholders and the wider stakeholder want continued revenue and profits" from the country. It will not be tolerated.
"This is affecting their share price, and it feels very inappropriate to continue," he said. McDonald's had a presence in Moscow in 1990 when the Soviet Union opened its economy, attracting thousands of people for its burgers and fries. Its closure now carries similar symbolic weight and could affect other companies.
However, rival fast-food chain Burger King is currently opening branches in Russia. He pledged $3 million (£2.3m) to support Ukrainian refugees and said people fleeing European countries could get free Whopper food vouchers.
Restaurant Brands International, which owns Burger King, has announced it will channel profits from its more than 800 franchises in Russia to humanitarian efforts. McDonald's CEO Chris Kempczynski said it was "impossible to predict" when it would reopen in Russia.
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