Starbucks said Monday it will permanently close up shop in Russia, joining hundreds of other western companies who have exited the country in response to the Kremlin’s invasion of Ukraine.
The Seattle-based coffee giant said in a statement that it has “made the decision to exit and no longer have a brand presence in the market.” Starbucks previously paused business operations in Russia on March 8.
“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 added.
Prior to the exit, Starbucks had 130 stores in Russia, though former CEO Kevin Johnson told staffers in March that they were “wholly owned and operated by a licensed partner.”
The financial impact of Starbucks’ decision to leave Russia permanently is unclear. A company representative did immediately return a request for comment.
Starbucks first entered the Russian market 15 years earlier, opening its first-ever store in the country at a mall in the town of Khimki near Moscow. At the time, a company executive touted the move as an “important step for the company,” according to Reuters.
In March, Starbucks said it would temporarily close stores and halt shipments of its products to Russia in response to the invasion.
“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,” Johnson said in a memo to staffers at the time.
Starbucks is the latest major company to exit Russia entirely due to the war. Earlier this month, fellow fast food giant McDonald’s said it would sell all of its Russia stores to a local licensee.
McDonald’s has begun the process of “de-arching” its restaurants, with photos published Monday showing the chain’s famous “Golden Arches” logo had been removed from a location in Khimki.
Nearly 1,000 companies have cut back on operations in Russia since the invasion began in late February, according to a running tally compiled by Yale University’s School of Management.
[Written in collaboration with other media outlets with information from the following sources]
