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Starbucks to exit Russia after nearly 15 years

EconomyStarbucks to exit Russia after nearly 15 years

Moscow (The Times Groupe)- Starbucks Corp (SBUX.O) announced on Monday it is leaving the Russian market after nearly 15 years. The coffee chain joins McDonald’s Corp (MCD.N) in marking the end of some of the top Western brands in the country.

The Seattle-based Starbucks operates 130 stores in Russia through its licensee, Alshaya Group, with nearly 2,000 employees there.

The decision by Starbucks to wind down its operations in Russia differs from other foreign companies.

McDonald’s announced last week it was selling its restaurants in Russia to Alexander Govor, who will rebrand them under a new name and retain their trademarks, while Renault (RENA.PA) is selling its majority stake in Russia’s largest carmaker.

Other Western companies, including Imperial Brands (IMB.L) and Shell (SHEL.L), are cutting ties with the Russia market by selling their assets or handing them over to local managers.

After Moscow’s invasion of Ukraine, Starbucks shuttered its stores and suspended all business activity in Russia.

After opening its first outlet in Russia in 2007, the company said it would continue to support its employees there and pay them for six months.

Starbucks did not provide any details on the financial impact of the exit. McDonald’s announced it would incur a non-cash charge of $1.4 billion.

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