After Renault and McDonald’s, this time it’s Starbucks. Another multinational company is leaving Russia in the wake of a three-month-long deadly war. According to Starbucks, even if Putin withdraws his business from the country, the workers will be paid for the next six months. The Kuwaiti ‘coffee chain’ multinational has about 2,000 employees in Russia.
Coffee Giant announced Monday that it will no longer have a brand presence in Russia. Starbucks has 130 locations in the country, which is less than 1% of the company’s annual revenue. They are all licensed locations, so Seattle-based companies do not operate themselves.
Both consumers and investors have pressured Western companies, such as Starbucks, to sever ties with Russia over its opposition to the Kremlin’s war with Ukraine, but it will take time to close licensing agreements. Starbucks has suspended all business activities with the country since March 8. The break includes shipments of all Starbucks products and the temporary closure of the cafe.
In its latest quarterly results released in early May, the company did not disclose the financial impact of the suspension. Former CEO Kevin Johnson promised to donate royalties from Russian businesses for humanitarian reasons.
The world-famous coffee shop set foot in Russia in 2007. Within a few days, they also gained popularity in that country. But in the wake of the Ukraine war, they decided to say goodbye to Russia.
Read More- The Strategy of Warfare: Russia Against Ukraine 2022
