▲ A man is sitting in a McDonald’s store in Yekaterinburg, Russia on the 9th (local time). McDonald’s has announced that it will temporarily suspend operations at 850 stores in Russia due to the invasion of Ukraine. Yekaterinburg/Tas Yonhap News
Famous Western brands such as Coca-Cola, Pepsi, and McDonald’s are withdrawing from Russia, which has invaded Ukraine.
According to the Wall Street Journal (WSJ) on the 8th (local time), Coca-Cola announced that it would cease operations in Russia.
The Russian and Ukraine businesses accounted for about 1-2% of Coca-Cola’s sales and operating profit last year.
McDonald’s also temporarily closed about 850 stores in Russia. It plans to continue to pay salaries to about 62,000 local workers.
Pepsi also announced that it will stop selling famous carbonated beverage brands such as Pepsi Cola and Seven Up, but will continue to sell snacks and daily necessities such as milk, cheese and baby food.
Starbucks also announced in a statement that it would “suspend all business in Russia.” The Russian and Ukrainian markets account for less than 1% of global Starbucks sales. There are about 130 Starbucks stores in both countries, but all are licensed and not run directly by Starbucks.
Universal Music, the world’s largest record label, also announced on the same day that it would cease all business in Russia and immediately close its local offices. Other major music companies such as Sony Music Group and Warner Music are known to be conducting similar discussions.
Unilever also announced on the same day that it would suspend imports and exports of products to Russia except for daily necessities and hygiene products. “We will no longer invest in Russia or profit from local sales,” Unilever CEO Alan Zoff said in a statement.
Shell, a major global oil company, which was criticized for its recent in-kind purchase of Russian crude oil, also issued an apology and vowed not to purchase Russian crude oil and natural gas in the future.
Virtually all western companies in all industries are under pressure to close their Russian business or are seriously considering it themselves.