More Multinational Companies Suspend Russian Operations

Allen Smith, J.D. By Allen Smith, J.D. March 9, 2022
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A McDonald's in Russia

​More multinational companies—including McDonald's, Starbucks and Coca-Cola—have announced they are suspending operations in Russia following the country's invasion of Ukraine. We've gathered articles on the news from SHRM Online and other media outlets.

More Than 800 McDonald's Restaurants Closed

McDonald's, which has had a presence in Russia for three decades, said it would temporarily close its 850 restaurants in the country. Chief Executive Chris Kempczinski noted that the company employed 62,000 people in the country, worked with hundreds of local Russian suppliers and partners, and served millions of Russian customers each day. McDonald's said it would continue to pay salaries for its employees in Russia, as it has for its employees in Ukraine.

(The New York Times)

Starbucks' Activity in Russia Suspended

In a March 8 message to employees, Starbucks CEO Kevin Johnson said that "today, we have decided to suspend all business activity in Russia." He added that "our licensed partner has agreed to immediately pause store operations and will provide support to the nearly 2,000 [employees] in Russia who depend on Starbucks for their livelihood." Johnson said the company is halting shipment of all Starbucks products to Russia.

(CNN)

Coca-Cola and PepsiCo Suspend Business in Russia

Coca-Cola announced on March 8 that it is suspending business in Russia. "Our hearts are with the people who are enduring unconscionable effects from these tragic events in Ukraine," the company said in a statement. "We will continue to monitor and assess the situation as circumstances evolve."

PepsiCo cited "the horrific events occurring in Ukraine" in announcing its decision to suspend sales of Pepsi-Cola and other brands in Russia. The company will continue to sell dairy products, including milk, as well as baby food and formula.

(CBS News)

Other Companies' Suspensions or Exits

Other companies reducing, suspending or exiting their operations in Russia include Adidas, Airbus, American Express, Apple, Boeing, Canada Goose, Cogent, Deloitte, DHL, EY, FedEx, H&M, IBM, Ikea, KPMG, Mastercard, Microsoft, Netflix, Nike, PwC, Sony, TJX, Unilever, UPS, Visa, Warner Bros., The Walt Disney Co. and Yum Brands. Yum Brands is closing 70 company-owned KFC restaurants and all 50 franchise-owned Pizza Hut restaurants.

(The New York Times)

Initial Suspensions and Closures of Business

Soon after the invasion, oil companies, technology corporations and manufacturers announced they were suspending or halting operations in Russia. Both BP and Shell exited Russia. Exxon Mobil also announced its departure. Others retreating from Russia included Dell Technologies, Ford and Ericsson. The world's biggest container ship operators—A.P. Moller-Maersk A/S and Mediterranean Shipping Co.—said they would temporarily suspend services to Russian ports, although they would continue moving food to and from Russia.

(SHRM Online)

How can you help?
The International Committee of the Red Cross remains active in Ukraine, saving and protecting the lives of victims of armed conflict and violence. Its neutral and impartial humanitarian action supports the most vulnerable people, and your donation will make a huge difference to families in need right now. Donate here.

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