Starbucks becomes latest firm to leave Russia over Ukraine war
The company has decided to continue to pay its workers in Russia for a period of six months.
The latest company that has decided to pull out of Russia due to its invasion of Ukraine is the famous American coffee chain Starbucks. It has now joined the list of firms that have stopped offering their services in the country.
The company had suspended its operations soon after the launch of Russia's offensive against Ukraine in February this year. It has now decided to leave the Russian market altogether. However, it will continue to pay its staff for the next six months. Since its arrival in 2007, the coffee chain has opened 130 stores in the country with nearly 2,000 people working in them.
"We condemn the unprovoked, unjust and horrific attacks on Ukraine by Russia, and our hearts go out to all those affected," the then Starbucks chief Kevin Johnson had said in March. "The invasion and humanitarian impact of this war are devastating and create a ripple effect that is felt throughout the world," he added.
French carmaker Renault also recently announced that it had sold its business to the Russian government. Hundreds of firms, including Coca Cola, Levi's and Apple, have either left Russia or suspended operations there.
Brewing giants Carlsberg (CARLb.CO) and Heineken have also pulled out of Russia as a mark of protest against the invasion of Ukraine.
Burger King has diverted profit earned from Russian operations to humanitarian efforts, while M&S has pledged more than £1.5m to support Ukrainian refugees. Recently, burger giant McDonald's also withdrew from Russia.
McDonald's CEO Chris Kempczinski said that the decision had been taken because it was "impossible to ignore the humanitarian crisis caused by the war in Ukraine," according to a report in The Independent. But several western brands have been unable to suspend operations in Russia despite wanting to do so because of the complex franchise deals with their Russian partners.
According to a BBC report, these brands are locked into legal franchise agreements and have outsourced the Russian businesses to third parties which have made it difficult for them to pull out of Russia.
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