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HomeBusinessStarbucks Announces They Will Quit Russia but Provide Six Months' Wages

Starbucks Announces They Will Quit Russia but Provide Six Months’ Wages

Starbucks is leaving Russia after 15 years, becoming the latest Western company to leave the nation following the Ukraine conflict.

After halting trade in March, the coffee chain will now exit the Russian market totally.

It said it will continue to pay roughly 2,000 employees in the nation for the next six months.

Starbucks, like McDonald’s and Renault, has decided to leave the nation forever.

The United States and its Western allies retaliated against Russia by imposing broad economic sanctions aimed at economically isolating it and cutting it off from the global banking system. Western corporations find it difficult to operate there due of the laws.

Starbucks first opened its doors in Russia in 2007 and has since grown to 130 licensed locations.

In March, the business halted supplies to Russia. It stated it has “taken the choice to depart the market and no longer have a brand presence.”

It did not reveal financial specifics about the move, but said it will help its employees “transition to other opportunities outside of Starbucks.”

Starbucks announced that the locations will close.

The Starbucks outlets are owned and operated by the Kuwait-based Alshaya Group, which stated the decision to depart was a “Starbucks statement” and referred inquiries to the coffee company. It didn’t specify whether it planned to sell the stores or reopen them under a new name.

McDonald’s said last week that it was selling its almost 850 stores in Russia to current licensee Alexander Govor, a Russian businessman who plans to rename the shops.

Renault, a French automaker, said earlier this month that its operations had been nationalized and would be handled by Russian government organizations, who stated they wanted to restart production under a Soviet-era automobile brand.

Last month, the mayor of Moscow estimated that approximately 200,000 people in the city face job losses as Western corporations leave the nation.

Bob Carlson
Bob Carlson
Bob Carlson is a business journalist, with over a decade of experience in the trenches of reporting up-to-date business news for publications all over the world. With a wealth of knowledge at his back, Bob strives to bring the most important insights into the business world for TheOptic daily.
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