https://arab.news/zqvtf
RIYADH: McDonald’s, Coca-Cola, and Starbucks are joining the global trend of halting Russian operations in support of Ukraine, Bloomberg reported.
Following widespread criticism for not taking action since the Ukraine-Russia invasion started two weeks ago, the three firms decided to temporarily shut off their stores in Russia.
McDonald’s and Starbucks said they will monitor the situation closely and may resume operation if tensions cool down.
While forgoing sales, the two giants will continue paying their staff, which analysts expect to weigh on profitability if the boycott goes on for a long time.
Such a step by major companies paves the way for others to do the same. Among the companies that have recently announced pausing work in Russia are PayPal, Amazon, Rolex, and L’Oréal.
It was announced later on Wednesday that Dutch brewer Heineken and Universal Music Group would also be halting operations in Russia over Moscow’s war in Ukraine.
The world’s second-biggest beer company said it was stopping the production, advertising and sale of the Heineken brand in Russia “in response to the continued escalation of the war.”
Heineken had already suspended new investments and exports to Russia last week.
“We are shocked and saddened to watch the tragedy in Ukraine unfold,” Heineken chief executive Dolf van den Brink said in a statement.
“The Russian government’s war against Ukraine is an unprovoked and completely unjustified attack,” he said.
Heineken employs 1,800 people in Russia and says it is the third-biggest brewer in the country, where it makes the Zhigulevskoe and Oxota brands for the local market.
The brewer said it would take “immediate steps to ring-fence” its Russian business from the rest of its global operations “to stop the flow of monies, royalties and dividends out of Russia.”
“Heineken will no longer accept any net financial benefit derived from our Russian operations,” it said.
Heineken’s other famous brands include Amstel, Tiger and Strongbow cider.
About 300 companies have announced their withdrawal from Russia since it invaded neighboring Ukraine, according to Yale University researchers.