London
26 °C
Manchester
Glasgow
20 °C
Dublin
Belfast
15 °C
Washington
35 °C
Denver
Atlanta
Dallas
Houston Texas
New Orleans
El Paso
Phoenix
Los Angeles
31 °C
9 °C
24 °C
11 °C
31 °C
Starbucks says it will completely exit Russia, closing 130 cafes / Photo: - - AFP/File
Starbucks says it will completely exit Russia, closing 130 cafes
Starbucks said Monday it will cease operations in Russia, shuttering its 130 cafes in the country.
The coffee chain, which suspended its operations in early March following the invasion of Ukraine in late February, said it will "exit" Russia and "no longer have a brand presence in the market."
"We will continue to support the nearly 2,000 green apron partners in Russia, including pay for six months and assistance for partners to transition to new opportunities outside of Starbucks," the company said.
The move follows a similar action last week by another giant US brand, McDonald's, which had a bigger presence in the country that dated back to the period near the end of the Cold War.
US brands have been under pressure to cut ties to Russia amid international condemnation the Ukraine invasion.
Starbucks has been in Russia for 15 years. In a December 2010 investor event, executives highlighted the country as a key emerging market for the brand, along with China, Brazil and India.
Starbucks did not disclose the financial impact of the exit.
McDonald's said its exit would result in one-time costs of $1.2 billion to $1.4 billion. On Thursday, the chain said it reached a deal to sell its Russia business to Russian businessman Alexander Govor, a McDonald's licensee.
Shares of Starbucks rose 0.5 percent to $73.76 early Monday.
G.Schulz--BlnAP
