RIYADH: McDonald’s, Coca-Cola, and Starbucks are joining the global trend of halting Russian operations in support of Ukraine, Bloomberg reported.
Following widespread criticism for not taking action since the Ukraine-Russia invasion started two weeks ago, the three firms decided to temporarily shut their stores in Russia.
McDonald’s and Starbucks said they will monitor the situation closely and may resume operations if tensions cool down.
While forgoing sales, the two giants will continue paying their staff, which analysts expect to weigh on profitability if the boycott goes on for a long time.
Such a step by major companies paves the way for others to do the same. Among the companies that have recently announced pausing work in Russia are PayPal, Amazon, Rolex, and L’Oréal.
About 300 companies have announced their withdrawal from Russia since it invaded neighboring Ukraine, according to Yale University researchers.