Starbucks To Completely Cease Operations In Russia, Will Close 130 Cafes

Starbucks Close Cafes In Russia: Starbucks said it will continue to support the nearly 2,000 green apron partners in Russia, including pay for six months and assistance for partners for transition to new opportunities.

Starbucks To Completely Cease Operations In Russia, Will Close 130 Cafes

US brands have been under pressure to cut ties to Russia amid international condemnation. (File)

New York:

Starbucks today it will cease operations in Russia, shuttering its 130 cafes in the country. The coffee chain, which suspended its operations in early March following the invasion of Ukraine in late February, said it will "exit" Russia and "no longer have a brand presence in the market."

"We will continue to support the nearly 2,000 green apron partners in Russia, including pay for six months and assistance for partners to transition to new opportunities outside of Starbucks," the company said.

The move follows a similar action last week by another giant US brand, McDonald's, which had a bigger presence in the country that dated back to the period near the end of the Cold War.

US brands have been under pressure to cut ties to Russia amid international condemnation the Ukraine invasion.

Starbucks has been in Russia for 15 years. In a December 2010 investor event, executives highlighted the country as a key emerging market for the brand, along with China, Brazil and India.

Starbucks did not disclose the financial impact of the exit.

McDonald's said its exit would result in one-time costs of $1.2 billion to $1.4 billion. On Thursday, the chain said it reached a deal to sell its Russia business to Russian businessman Alexander Govor, a McDonald's licensee.

Shares of Starbucks rose 0.5 per cent to $73.76 early today.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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