Several major American food and beverage companies announced Tuesday that they would suspend their operations in Russia, a step that comes after days of mounting public pressure on the corporate world to sever ties with the country over the Kremlin's invasion of Ukraine.
The group included McDonald's, Starbucks, Coca-Cola and PepsiCo, some of which had operated in Russia for decades and had faced heightened scrutiny in recent days as other companies elected to halt their business dealings there. A veritable naughty-or-nice list, compiled by a Yale University professor, generated headlines by highlighting the companies maintaining normal operations.
McDonald's chief executive Chris Kempczinski said the global fast food chain would temporarily close its 850 restaurants in the country.
“Our values mean we cannot ignore the needless human suffering unfolding in Ukraine,” he said.
The company said it will continue paying its 62,000 Russian employees while stores are closed.
The decision is a notable shift for a company that has usually shied away from inserting itself into polarizing topics, industry experts say, signifying changes in global culture where corporations are no longer choosing to be neutral on social issues but responsive and declarative about their stances.
Shortly after the McDonald's announcement, Starbucks, Coca-Cola and PepsiCo announced they would pause services in Russia.
Starbucks's licensed partner, the Kuwait-based Alshaya Group, which owns and operates 130 stores in Russia, will temporarily shutter locations and “provide support” to its roughly 2,000 local employees, Starbucks CEO Kevin Johnson said in an open letter. The company will also halt all shipments of Starbucks products to the country.
“The invasion and humanitarian impact of this war are devastating and create a ripple effect that is felt throughout the world,” Johnson wrote in a letter last week, as more people demanded that companies take a stance.
Coca-Cola, in a brief statement Tuesday, made a similar announcement and suspended its business in Russia.
And PepsiCo, which has operated in Russia for more than six decades, halted its soda sales, including its eponymous cola and 7UP. But the company said it would continue to manufacture milk, baby formula and baby food, allowing it to keep tens of thousands of workers employed.
“Pepsi-Cola entered the market at the height of the Cold War and helped create common ground between the United States and the Soviet Union,” the company's chief executive, Ramon Laguarta, wrote in an email to employees.
But after days of remaining in full operation, the company decided to partially pull out “given the horrific events occurring in Ukraine,” Laguarta said.
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