CHICAGO (Agefi-Dow Jones)–Starbucks announced its withdrawal from Russia on Monday, as the invasion of Ukraine ended the cafeteria chain’s 15-year presence in the country.
The American group had already suspended its activity on March 8 shortly after the outbreak of hostilities. On Monday, it announced the permanent closure of its 130 stores, a decision that seals its withdrawal from the Russian market where the first Starbucks opened in 2007.
Some 2,000 local employees will continue to receive their salaries for six months and will be supported in their retraining process. The group did not specify what the financial impact of this restructuring would be, while Russia is a relatively small market for the chain.
This disengagement comes a week after the announcement of the sale of the McDonald’s subsidiary in Russia, which has been in business for three decades. The fast food giant operated 847 restaurants and employed 62,000 people in Russia. This withdrawal will result in an accounting charge of between $1.2 billion and $1.4 billion and a significant foreign exchange loss.
McDonald’s directly owned most of its outlets in Russia, unlike Starbucks which was through a franchisee.
Many Western companies have suspended or ceded their activities in Russia since the beginning of the war, while the policy of sanctions against the regime of Vladimir Putin complicates the operations of their local subsidiaries.
France’s Renault has also reached an agreement to sell its 68% stake in Russia’s top automaker, AvtoVAZ, to a public body, while retaining an option that would allow it to take over some assets in several years. The oil major Shell has implemented a gradual withdrawal plan from Russia.
-Heather Haddon, The Wall Street Journal (French version Thomas Varela) ed: ECH
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May 23, 2022 11:57 ET (15:57 GMT)