Moscow Invades Ukraine, McDonald's And Starbucks Close Hundreds Of Outlets In Russia

Illustration of a McDonald's outlet in Kaliningrad Russia. (Wikimedia Commons/Spacekid)

JAKARTA - Consumer retail giants such as McDonald's, Starbucks to Coca-Cola have decided to halt their sales in Russia, joining other global companies to oppose the invasion of Ukraine.

McDonald's said it was temporarily closing some 850 of its restaurants in Russia. Meanwhile, Starbucks also said 100 of its coffee shops would close. McDonald's said there was "unnecessary human suffering in Ukraine", and Coca-Cola called the war "tragic".

However, both Starbucks and Coca-Cola said they would continue to pay their staff. It is known, McDonald's has about 62,000 staff in Russia. The company has also experienced supply chain problems there.

"The conflict in Ukraine and the humanitarian crisis in Europe have caused untold suffering to innocent people," McDonald's chief executive Chris Kempczinski wrote in a memo to employees.

Furthermore, the company said it was "impossible to predict" when it would reopen.

"As a system, we join the world in condemning aggression and violence and praying for peace."

McDonald's, Coca-Cola and other companies are under pressure to act as Russian violence against civilians escalates. The hashtags #BoycottMcDonalds and #BoycottCocaCola trended on Twitter on Mondays and weekends, respectively.

Illustration of a Starbucks shop in Russia. (Wikimedia Commons/New russian)

Dozens of high-profile companies including Netflix and Levi's have suspended sales or stopped providing services in Russia amid tough sanctions imposed by Western allies.

McDonald's came to Moscow in 1990, when the Soviet Union opened its economy, attracting thousands of people for its burgers and fries.

When tensions with the West escalated in 2014 over Russia's annexation of Crimea, several of its restaurants were closed as part of an investigation into food standards, which many see as politically motivated.

The current shutdown also carries symbolic weight, and is likely to affect other companies.

McDonald's has most of its stores in Russia. Combined with Ukraine, restaurants account for about 9 percent of the company's revenue and about 2 percent of global sales.

It has also temporarily closed its 108 restaurants in Ukraine, where it continues to pay salaries and has donated $5 million to an employee relief fund. McDonald's said Ronald McDonald House Charities would remain active in Ukraine and Russia.

Mr Kempczinski said the company had made a decision over the past week. In addition to staff, the move will affect the hundreds of suppliers and millions of customers that McDonald's serves in Russia every day.

Meanwhile, Coca-Cola on Tuesday said it was suspending operations in Russia, which accounts for about 2 percent of the company's revenue and operating income. It also has about a 20 percent stake in its bottling and distribution business in Russia.

"Our hearts are with those who have suffered the devastating effects of this tragic event in Ukraine. We will continue to monitor and assess the situation as the situation develops," the company said.

Starbucks also announced that it would stop all business activities in the country, including shipping Starbucks products.

The country's coffee chain licensees will temporarily close the more than 100 stores operating there. The licensee, Kuwait-based Alshaya Group, will continue to pay its roughly 2,000 employees, Starbucks said.

Nonetheless, Starbucks said it would continue to "provide support to the nearly 2,000 partners in Russia who depend on Starbucks for their livelihood".