Starbucks Completely Withdraws from Russia After 15 Years

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Starbucks is withdrawing from Russia after 15 years. Following Russia's invasion of Ukraine, major Western companies such as McDonald's and ExxonMobil are continuing their exit from Russia.

According to the economic media CNBC, Starbucks announced in a statement on the 23rd (local time), "we have decided to withdraw from the Russian market and not to leave the brand there in the future." Accordingly, Starbucks will permanently close its 130 stores in Russia. The sales from these stores account for less than 1% of Starbucks' annual revenue.

Starbucks plans to pay salaries for the next six months to approximately 2,000 local employees currently working in Russian stores and assist them in finding new employment.

The specific financial terms for liquidating the Russian business have not been disclosed. Starbucks opened its first store in Moscow in 2007 and has operated in Russia under a license agreement with the Kuwaiti company M.H. Alshaya.

Earlier, Starbucks had suspended all business activities in Russia on March 8, just two weeks after Russia's invasion of Ukraine. As a result, all stores in Russia were temporarily closed, and exports of Starbucks products to Russia were halted.

Kevin Johnson, Starbucks CEO at the time, said, "We condemn Russia's unjustified and terrible attack on Ukraine."

This decision was announced less than a week after McDonald's announced the sale of its Russian business on the 18th. CNBC reported, "In addition to McDonald's and Starbucks, many Western companies including ExxonMobil, Shell, British American Tobacco (BAT), and Renault have decided to withdraw from the Russian market."