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Starbucks is leaving Russia for good

Starbucks is leaving Russia for good
as Russia continues its war in Ukraine, the western world continues to abandon the eastern european nation back in March after Russia's initial invasion, fast food giant Mcdonald's decided to leave and recently the golden arches were removed from its restaurants. But now, according to CNBC, Starbucks has decided to make its exodus as well. Starbucks had suspended its business in Russia back in March. That included shipments of its branded items into the country. Now, over the next few months, it will reportedly lay off all of its employees and make its final exit. Starbucks has done business in Russia for 15 years now having 130 locations across the country, according to CNBC. Still that accounts for only around 1% of their business. By contrast, Mcdonald's restaurants in both Ukraine and Russia account for nearly 10% of their total revenue. Starbucks says it will continue to pay around 2000 Russian employees for the next six months. Yeah.
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Starbucks is leaving Russia for good
Starbucks is leaving Russia for good.The coffee company paused its operations and stopped shipments of its products to Russia in March. Now, it "has made the decision to exit and no longer have a brand presence in the market," Starbucks said in a brief statement Monday.Employees in the country, which number about 2,000, will get paid for six more months. Starbucks will also help them look for new jobs outside of the company.Starbucks first opened in Russia in 2007. As of March, it had 130 Russian locations, all owned and operated by a partner.The move follows a similar one by McDonald's.Last week, the burger chain said that it is selling its Russia business after operating for more than 30 years in the region. McDonald's said that the "humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald's to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald's values."McDonald's later announced that it has entered into an agreement to sell the business to an existing licensee, who will open the restaurants with new branding.Starbucks and McDonald's both decided to pause their operations around the same time in March.At the time, Starbucks' then-CEO Kevin Johnson said "we condemn the horrific attacks on Ukraine by Russia and our hearts go out to all those affected."CNN's Jordan Valinsky contributed to this report.

Starbucks is leaving Russia for good.

The company and stopped shipments of its products to Russia in March. Now, it "has made the decision to exit and no longer have a brand presence in the market," Starbucks said in a brief statement Monday.

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Employees in the country, which number about 2,000, will get paid for six more months. Starbucks will also help them look for new jobs outside of the company.

Starbucks first opened in Russia in 2007. As of March, it had 130 Russian locations, all owned and operated by a partner.

A closed Starbucks cafe is pictured in the center of Moscow.
picture alliance via Getty Images
A closed Starbucks cafe is pictured in the center of Moscow.

The move follows a similar one by McDonald's.

Last week, the burger chain said that it is selling its Russia business after operating for more than 30 years in the region. McDonald's said that the "humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald's to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald's values."

McDonald's later announced that it has entered into an agreement to sell the business to an existing licensee, who will open the restaurants with new branding.

Starbucks and McDonald's both decided to pause their operations around the same time in March.

At the time, Starbucks' then-CEO Kevin Johnson said "we condemn the horrific attacks on Ukraine by Russia and our hearts go out to all those affected."

CNN's Jordan Valinsky contributed to this report.