Starbucks Corp is withdrawing its brand from Russia after 15 years, the latest Western company to leave the country after the war in Ukraine.
The coffee chain said it will close its business in Russia after ceasing operations there in March.
Starbucks entered Russia in 2007 and had grown to 130 cafes owned and operated by a licensee.
The move comes as the war rages on with no clear end in sight.
The US and Western allies responded to the war by imposing sweeping economic sanctions on Russia aimed at isolating it economically and cutting it off from the global financial system. The rules make it difficult for Western companies to operate there.
Starbucks stopped shipping to Russia in March. It said it has now “made the decision to exit and no longer have a brand presence in the market”.
It didn’t give details on the financial impact of the decision, but said it will continue to pay nearly 2,000 employees at Starbucks stores across the country for six months and help partners “transition to new opportunities outside of Starbucks.”
Kuwait-based Alshaya Group, which owns and operates the Starbucks stores, said the decision to leave the company was an “announcement from Starbucks” and referred questions to the coffee chain.
Last week, McDonald’s announced it was selling its nearly 850 restaurants in Russia to a current licensee, Russian businessman Alexander Govor, and French automaker Renault also said its business had been nationalized and is run by Russian government agencies.
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