Which businesses are leaving Russia?

When communism in the Soviet Union fell apart thirty years ago, Western corporations increased their presence in Russia.

Large Western corporations’ entry marked the beginning of a new era, with Russians becoming avid consumers of brands like fast-food chain McDonald’s, Levi jeans, and high-end items.

Following President Putin’s invasion of Ukraine, an increasing number of businesses have now halted operations in Russia.

What companies are leaving in what areas and why are others holding back?

The biggest names in fast

Food and beverages, including McDonald’s, Coca-Cola, Starbucks, and Heineken, have just announced that they are ceasing operations in Russia in response to rising pressure.
McDonald’s and Starbucks both announced temporary closures of their respective networks of about 850 locations each in Russia.

According to Anna MacDonald, a fund manager at Amati Global Investors, the companies originally kept quiet about the issue but acted after shareholders “wouldn’t stand” for the continuous production of profits from Russia.

She told the BBC that it was “affecting their shared values” and that continuing to do so was “very wrong.”

Pepsi, which employs 20,000 people in Russia and has a significantly greater footprint there than Coca-Cola, announced it was ceasing the manufacture and sales of Pepsi and other international brands there. However, the business claimed it would still continue to offer other goods.

Food manufacturers Nestle, Mondelez, Procter & Gamble, and Unilever indicated they would keep supplying necessities even though they had stopped investing in Russia.

In light of the fact that it is “no longer sustainable in the current environment,” British American Tobacco has declared that it intends to sell its operations in Russia.

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