MOSCOW – Top consumer companies including McDonald’s, Pepsico, Coca-Cola, and Starbucks are suspending their operations in Russia over a military operation in neighbouring Ukraine.
Reports in international media said the western brands joined the corporate exodus in light of outrage for continuing to operate in Moscow as earlier many companies announced suspensions and paused sales.
Russia’s military operation in Eastern European nation was said to be a global economic ‘game changer’ while the companies, which are operating in Russia for decades, decided to halt operations.
McDonald’s reportedly suspends operations at its 850 locations. The company claimed that its restaurants in Russia and Ukraine contributed nearly 9 percent of the total revenue.
Later, cafe company Starbucks followed, saying the 130 restaurants, which are owned and operated by the Kuwaiti conglomerate, would also immediately close.
Pepsi, whose drink has been sold in the country for near a half-century, announced to suspend soda sales. However, its sister companies that manufactured milk, and baby formula and will continue working.
Furthermore, the companies announced to keep its workers employed. The top fast-food restaurant said it would continue to pay salaries for employees, as it has for its employees in war-hit Ukraine.
The development comes a day after Ukraine’s foreign minister urged western firms to stop operations from Russia on ‘humanitarian grounds’.
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Meanwhile, global firms continued scrambling to assess their links with Russia after the US, EU, and UK sought to isolate it economically with firm sanctions.
Amid the global sanctions, some Chinese state-owned financial institutions have been quietly distancing themselves from Russia’s economy as a balancing act.
