Starbucks joined McDonald’s in announcing a permanent end to its operations in Russia this week, having previously suspended trading in Russia in March. The news comes amid an exodus of Western businesses from Russia, including tech giant Apple and furniture retailer IKEA. 

       Following Russia’s invasion of Ukraine, Western businesses in Russia have been rushing towards the exit, symbolizing an end to decades of economic, political, and diplomatic cooperation between the nation and the West. 

       A month after the Russian invasion of Ukraine in February 2022, Starbucks and McDonald’s followed other major global brands in announcing a temporary closure of their businesses in Russia. In scenes reminiscent of the burger chain’s 1990 opening in the country, consumers rushed to McDonald’s restaurants to get a last meal before the closures, despite freezing winter temperatures.     

     According to CNN, the temporary closure in both Russia and Ukraine cost McDonald’s $127 million, including $100 million for disposed food and inventory, and $27 million to cover staff costs and payments for leases and supplies. The closures affected McDonald’s net income, which fell 28% in the first three months of the year. 

    On May 16, the company announced that the temporary closure of its restaurants in Russia would be made permanent. “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,” the company said in a statement. 

     The company later found a buyer in Russian businessman Alexander Govor, who already operated 25 of McDonald’s outlets in Siberia. The nearly 850 Russian restaurants will operate under a new name, staffed by the same 62,000 employees. McDonald’s has been busy taking down all golden arches and related branding atop its restaurants—in a process it calls “de-Arching”. 

     A week later, Starbucks followed in McDonald’s footsteps, announcing its decision to “exit and no longer have a brand presence in the Russian market”. The cafe chain said in a statement that it would continue to pay its 2,000 employees’ salaries for six months.