The decision was announced through a memo to employees. Before pulling out, the Seattle-based coffee company had already paused all business operations at its 130 stores across the country, a Kuwaiti franchise partner operates.
The decision affects hundreds of Russians who work at the coffee shops. Starbucks said that it would keep paying those employees for some time and help them find new employment.
“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 Monday in a statement.
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In early March, when Starbucks paused business in Russia, CEO Kevin Johnson described the Russian war in Ukraine as “horrific” and reiterated support for the Russian workers affected by the decision to cut off business in the country.
“Through this dynamic situation, we will continue to make decisions that are true to our mission and values and communicate with transparency. Thank you for the care and concern you share with me and your leaders,” Johnson said.
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The move appears after a series of corporate departures from Russia, which has faced biting sanctions and international condemnation for its invasion.
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McDonald’s began selling its Russian businesses and removing its company from the country earlier this month. Like Starbucks, the fast-food company had suspended all business in the country in response to the war. McDonald’s said it would offload its “entire portfolio” business to a Russian buyer over the coming weeks.
Starbucks’s announcement comes after President Joe Biden signed legislation providing Ukraine with $40 billion to help support itself as Moscow continues its attack against Ukraine. The war sparked off about three months ago and has resulted in thousands of deaths and accusations of war crimes.
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Starbucks CEO Kevin Johnson described the Russian attacks as “horrific” in a Tuesday message about the situation, noting the company would help the Russian workers affected by the decision to cut off business in the country.
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“Our licensed partner has agreed to pause store operations immediately and will provide support to the nearly 2,000 partners in Russia who depend on Starbucks for their livelihood,” Johnson said. “Through this dynamic situation, we will continue to make decisions that are true to our mission and values and communicate with transparency. Thank you for the care and concern you are sharing with me and your leaders.”
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Coca-Cola also announced Tuesday afternoon it would halt all business operations and activity in Russia until the situation resolves.
“Our hearts are with the people who are enduring unconscionable effects from these tragic events in Ukraine,” the company said in a brief press release. “We will continue to monitor and assess the situation as circumstances evolve.”
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