Starbucks Corp. is ceasing business operations in Russia. The company had suspended activity in the country on March 8 and has decided in late May to no longer have a brand presence there.
Starbucks has approximately 130 stores in Russia. The company will continue to support its employees in Russia, of which there are approximately 2,000, for six months and will assist employees in finding new opportunities outside of Starbucks.
Starbucks’ announcement comes a week after McDonald’s Corp. said it was divesting its business in Russia. Following its announcement, McDonald’s entered a sale and purchase agreement with its current licensee Alexander Govor. A Russian businessman, Mr. Govor will acquire McDonald’s entire restaurant portfolio in Russia but will operate them under a new brand, which will include changes to the restaurant name, logo and menu.