Starbucks will close its operations in Russia today, closing 130 of its cafes in the country. Coffee Chain, which suspended its operations in early March after the invasion of Ukraine in late February, said it would “exit” from Russia and “no longer have a brand presence in the market.”
“We will continue to support about 2,000 Green Apron partners in Russia, including six months’ salary and support for partners to move to new opportunities outside of Starbucks,” the company said.
The move follows a similar move last week by another giant US brand, McDonald’s, which had a large presence in the country nearing the end of the Cold War.
Amid international condemnation of the Ukraine invasion, US brands are under pressure to sever ties with Russia.
Starbucks has been in Russia for 15 years. At a December 2010 investor event, executives highlighted the country as a key emerging market for the brand, along with China, Brazil and India.
Starbucks did not disclose the financial impact of the departure.
McDonald’s says its departure will result in a one-time cost of $ 1.2 billion to $ 1.4 billion. On Thursday, the chain said it had reached an agreement to sell its Russian business to Russian businessman Alexander Govar, a McDonald’s licensee.
Shares of Starbucks rose 0.5 percent to .7 73.76 early today.
(Except for the title, this story was not edited by NDTV staff and was published from a syndicated feed.)