Seattle-based Starbucks has 130 stores in Russia, operated by its licensee Alshaya Group, with nearly 2,000 employees in the country.
Starbucks' decision to wind down its operation in Russia is different to the approach some other foreign companies have taken.
McDonald's last week said it was selling its restaurants in Russia to its local licensee Alexander Govor to be rebranded under a new name, but will retain its trademarks, while France's Renault is selling its majority stake in Russia's biggest carmaker with an option to buy back the stake.
A slew of other Western companies, including Imperial Brands and Shell, are cutting ties with the Russia market by agreeing to sell their assets in the country or handing them over to local managers.
In March, Starbucks shuttered its stores and suspended all business activity in Russia, including the shipment of its products to the country, following Moscow's invasion of Ukraine.
The company, which opened its first outlet in Russia in 2007, said it will continue to support its employees there, including paying them for six months.
Starbucks did not provide details on the financial impact of the exit. McDonald's had said it would take a primarily non-cash charge of up to $1.4 billion.
Published : Jul 02, 2022
Published : May 24, 2022
By : Reuters