Starbucks will exit Russia after 15 years, closing 130 licensed cafes.
The coffee giant announced Monday that it will no longer have a brand presence in Russia. The firm is joining companies like McDonald’s and British American Tobacco in withdrawing from the country after the invasion of Ukraine.
After Starbucks had stopped shipments to Russia last March, now it made the decision to exit and no longer have a brand presence in the market.
No further details were given on the financial impact of the decision, but the company said it would continue to pay nearly 2,000 staff at Starbucks shops in the country for six months and help them transition to new opportunities.
Starbucks accounts for less than 1% of the company’s annual revenue in Russia.
The move comes as the war continues, with no clear end in sight and growing pressure against the Kremlin and Vladimir Putin.
Western countries are setting economic sanctions against Russia aimed at isolating it economically and cutting it off from the global financial system. The rules make it difficult for Western companies to operate there.
Last week, McDonald’s announced that it was selling its nearly 850 restaurants in Russia to a current licensee. French carmaker Renault also said its business had been nationalized.