American coffee company, Starbucks, becomes the latest Western corporation to announce its exit from the Russian market after 15 years. The coffee brand ceased trading in Russia in March but announced that it will now pull out entirely according to a statement issued by the company.
The release said that the company would continue to pay its near 2000-strong workforce six months' salary as well as providing assistance to its staff “to transition to new opportunities outside of Starbucks.”
The coffee giant becomes the latest in a string of Western organisations that have suspended or exited from the Russian market following the country’s invasion of Ukraine. Last week, McDonald’s announced that it would be selling its 850 restaurants whilst earlier this month, French carmaker Renault sold its majority stake in Aftovaz to a state research institute.
Amidst the ongoing conflict, sanctions and isolation from the global financial system make operating in Russia difficult for many Western businesses. Others have chosen to suspend their operations entirely due to the negative social impact of continuing to service the Russian market.
Starbucks entered Russia in 2007 and had grown to include 130 shops owned and operated by a licensee.
Paul Arkwright
Publisher
