In a memo to employees, Starbucks said it decided to close its 130 stores and no longer have a brand presence in Russia, as per the AP report.
However, Starbucks also said that it will continue to pay its nearly 2,000 Russian employees for a period of six months and help them transition to new jobs.
Starbucks Corp. CEO Kevin Johnson wrote in a message to employees that "through this dynamic situation, we will continue to make decisions that are true to our mission and values and communicate with transparency."
Last week, Mcdonald's announced its exit from the Russian market. The stores which are almost all owned by Mcdonald's are being sold to an existing Russian franchisee. However, these stores no longer will be allowed to use McDonald's name or menu.
At present, a Kuwait-based franchise operator, Alshaya Group owns and operates Starbucks stores in Russia.
Amidst the Russia-Ukraine conflict, in early March, Starbucks had announced to keep its Russian stores open, however, decided to donate any profits to humanitarian relief efforts in Ukraine.
However, after major food and beverages companies such as Coca-Cola, PepsiCo, McDonald's, and others temporarily halted their business in Russia - Starbucks changed its course as well and announced a temporary shut down of its Russian stores.
Starbucks stepped into the Russian market in 2007.
After Moscow led an all-around invasion in Ukraine in the last week of February, many western companies in various segments announced their exit from the market.
