June 27, 2022 22:25 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Assam floods: Aamir Khan donates Rs. 25 lakhs to CM relief fund | Delhi Police arrest AltNews journalist Mohammed Zubair for allegedly hurting religious sentiments | Shiv Sena rebels get reprieve over disqualification notices from Supreme Court till July 12: All updates | PM Narendra Modi highlights India's efforts for green growth at G7 session | Mann Ki Baat: PM Modi calls upon people to follow Covid protocols amid cases' surge
Ukraine War: Starbucks announces permanent exit from Russia after 15 yrs Starbucks | Russia
Image Credit: wikipedia.org

Ukraine War: Starbucks announces permanent exit from Russia after 15 yrs

India Blooms News Service | @indiablooms | 25 May 2022, 06:47 pm

Starbucks has announced its exit from Russia two months after it stopped doing business in the country in the wake of Russia's invasion of Ukraine.

The American multinational chain of coffeehouses said it would continue to pay nearly 2,000 workers employed with it in the country for six months.

The company joins other multinational firms like McDonald's and Renault in leaving the Russian market for good.

Though the US and its allies did not join the war against Russia, they have imposed wide-ranging sanctions to paralyze the Russian economy and cut it off from the international financial system.

Ever since Russia launched a "special operation" in Ukraine, dozens of companies across the world have stopped business in the country.

Financial restrictions on SWIFT and capital controls added with international sanctions, the closure of airspace, and transport links due to the war have blocked the possibility of doing any business for many companies to supply parts, make payments and deliver goods to and from Russia, according to a Bloomberg report.

The companies also face potential international consumer backlash and loss of image if perceived as aiding Vladimir Putin's regime, triggering an exodus of corporations from Russia.

Starbucks entered Russia in 2007 and expanded its footprint with 130 shops owned and operated by a licensee.

In March, Starbucks stopped shipments to the country as it initiated winding up its business after doing business in the country for 15 years.

It said it had now "made the decision to exit and no longer have a brand presence in the market", reported BBC.

A spokeswoman for Starbucks said the stores would close, it added.

The Kuwait-based Alshaya Group, which owns and operates the Starbucks stores, said the decision to leave Russia was a "Starbucks announcement" and referred questions to the coffee chain.

Related Images
FOHMA addresses press conference 01 Jan 1970, 05:30 am
Related Videos
PM Modi on Union Budget 2022-2023 01 Feb 2022, 06:28 pm
IBNS Live Business Chat 30 Dec 2021, 05:53 pm