NEW YORK: McDonald’s, Coca-Cola and Starbucks on Tuesday bowed to public pressure and suspended their operations in Russia, joining the international corporate chorus of outrage over Moscow’s invasion of Ukraine.

Several of these companies, symbols of American cultural influence in the world, have been the subject of boycott calls on social media as investors have also begun to ask questions about their presence.

“We cannot ignore the needless human suffering unfolding in Ukraine,” the fast-food giant said, announcing the temporary closure of all 850 restaurants in Russia, where it employs 62,000 people.

Starbucks, Coca-Cola and PepsiCo announced their own decisions to halt or restrict business in quick succession, noting the growing human cost of the invasion.

PepsiCo said that despite halting sales in Russia of its flagship beverage, as well as 7Up and Mirinda, it would continue to offer products like milk and baby food.

“By continuing to operate, we will also continue to support the livelihoods of our 20,000 Russian associates and the 40,000 Russian agricultural workers in our supply chain,” PepsiCo CEO Ramon Laguarta said in a statement.

Starbucks, which has 130 Kuwaiti conglomerate-run coffee shops in Russia, said all operations, including product shipments, will be suspended.

General Electric also said in a Twitter post that it was partially suspending its operations in Russia.

GE said two exceptions would be essential medical equipment and support for existing power services in Russia.

A team from Yale University that keeps a list of companies with a significant presence in Russia said about 290 have announced withdrawal from the country since it invaded neighboring Ukraine, reminiscent of “the large-scale corporate boycott of Apartheid South Africa in the 1980s.”

About 30 multinationals still remain on the list of companies with significant exposure to Russia.

Some companies may be hesitant to leave because they think they can mediate or because they make essential products such as pharmaceutical ingredients, said Tim Fort, a professor of business ethics at Indiana University.

But he said they have to pick a side “and it doesn’t strike me as this being very difficult to pick” given Russia’s human rights and conflict law violations.

Published in Dawn, March 10th, 2022

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