Major companies including McDonald’s, Coca-Cola, Pepsi, and Starbucks have joined a cascade of major companies that have suspended services in Russia since the start of its invasion of Ukraine.
“Our values mean we cannot ignore the needless human suffering unfolding in Ukraine,” McDonald’s CEO Chris Kempczinski said in a letter to employees on Tuesday. “McDonald’s has decided to temporarily close all our restaurants in Russia and pause all operations in the market.”
The decision effectively closes the 850 McDonald’s restaurants in Russia. Kempczinski said all Russian employees will continue to receive a full salary, and the company continues to pay salaries for Ukrainian employees as well.
Coca-Cola said in a short statement on Tuesday that it will suspend business in Russia.
“Our hearts are with the people who are enduring unconscionable effects from these tragic events in Ukraine,” the company said.
The closures come amid rising calls on social media to boycott firms over continued business operations in Russia, among other political pressures. New York State comptroller Thomas DiNapoli on Friday wrote letters to various companies, including PepsiCo and McDonald’s, urging them to cease business operations in Russia because of “legal, compliance, operational, human rights and personnel, and reputational risks,” Reuters reported.
DiNapoli manages New York’s $280 billion pension fund. The Comptroller’s office said the fund “estimates it has $110.8 million” in investments that include “direct holdings and co-mingled funds in Russian companies.”
Pepsi said on Tuesday that it will pause some operations in Russia, which represents about 4 percent of the company’s global market, according to CNBC. Pepsi will halt advertising and sales of its drinks, while continuing to sell baby formula and other essential products.
“As a food and beverage company, now more than ever we must stay true to the humanitarian aspect of our business,” Pepsi CEO Ramon Laguart told employees in a notice viewed by CNBC.
Meanwhile, Starbucks announced on Tuesday that its “licensed partner” in Russia, Alshaya Group, will halt all operations.
“We continue to watch the tragic events unfold and, today, we have decided to suspend all business activity in Russia, including shipment of all Starbucks products,” CEO Kevin Johnson said in a statement. “Our licensed partner has agreed to immediately pause store operations and will provide support to the nearly 2,000 partners in Russia who depend on Starbucks for their livelihood.”
Other companies that have already suspended service in Russia include Netflix, Apple, Samsung, Microsoft, and Cisco.