On Tuesday, March 8, another development in Russia made headlines. Companies like McDonald’s, Starbucks, Coca-Cola and PepsiCo suspended sales of their best-selling products in the country. This was reportedly in order to pose a united reproach of the tensions in Ukraine. Notably, these are the companies that highlight the United States for majority of the world.
Corporate pioneers of McDonald’s and Pepsi has been associated with Russia for decades. Their ties with the Soviet Union, along with the post-Soviet Russia has been a true indication of improving international ties. Until now, all of these four corporate giants had significant operations going on in all of Russia.
McDonald’s specified that they would continue giving their 62,000 Russian employees their salaries. The first Russian McDonald’s outlet was opened in 1990 at the Pushkin Square, Moscow in 1990. It had 847 restaurants in the country in total, which they have now closed. A professor at the Yale School of Management, Jeffrey Sonnenfeld remarks this as the “right decision.” He is known to track the stances of major companies on Russia.
Among others, Starbucks is currently conducting the temporary closure of its stores that are hundreds in number. PepsiCo Inc. specified that they would stop the advertising of all their products in Russia. Along with it, they would suspend the sale of every drinks brand. However, they will go on selling essentials in the country, including baby food and milk. Coca-Cola Co., Pepsi’s rival just mentioned the suspension of their business in Russia. Coke was the 1980 Moscow Olympics’ official drink, which the US had boycotted in wake of the Soviet invasion of Afghanistan.
Other Companies Rebuke Russia:
On Tuesday itself, Amazon announced that they would suspend the acceptance of new customers from Russia and Ukraine for their cloud services. Universal Music reportedly halted all their functions on Russia. In fact, even the dating app, Bumble Inc. will take the step to remove its apps from Russian stores, and ones in Belarus.
Similarly, Royal Dutch Shell Plc has stopped purchasing oil from Russia. They specified that they would sever all ties with Russia entirely, with the US taking its own step. The United States came forward to ban all imports of Russian oil and energy in order to punish Moscow.
Even Britain took the decision to eventually ban all Russian oil imports, but not right this instant. In order to give businesses some time to look for alternatives, they have decided to phase it out gradually, Additionally, The London Metal Exchange suspended the trade in nickel on March 8.