Thu. Oct 6th, 2022

Big giants like MC Donald’s, Coca-Cola and Starbucks have temporarily halted their business in Russia due to the invasion in Ukraine.

Mc Donald’s said that it is temporarily closing its approximately 850 outlets in Russia. Additionally, Starbucks said it’s around 100 locations will remain closed.

Recently, these companies have drawn criticism for continuing their sales in Russia, while the other US companies have already announced a temporary halt in sales.

PepsiCo generates around 4% of its annual revenue in Russia. Although, it doesn’t halt the supply of all products, it will continue the sales of some of the essential products like milk, baby food etc. Nevertheless, it will suspend the sale of cola as well as investments in the country.

Furthermore, Mc Donald’s was established in Moscow in 1990, a little before the collapse of the Soviet Union. Therefore, its symbolical to the cultural influence and now its closure is equally critical as it has the potential influence on other companies to follow its steps.

However, another fast-food giant Burger King, is continuing to operate in Russia. However, it committed $3m to support Ukrainian refugees. Amid severe sanctions on Russia, some well-known companies like Netflix have stopped providing their services in Russia.

The situation has become even more intense when global brands like Universal Music Group said that it was suspending all operations in Russia.

The list includes some big cosmetic companies as well, Dove and L’Oréal are suspending the trade with Russia and putting media spending and investment in the country to halt.

Furthermore, the narrative of every company differs from one another. Some firms have defended the plan of continuing sales and service in Russia, including Uniqlo, whose founder mentioned that clothing is a ” necessity of life.”

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