Some big-name companies had stayed in Russia even after majors like Apple, Twitter and General Motors left. That’s changing.
Even as companies as diverse as Apple (AAPL) – Get Apple Inc. Report, Twitter (TWTR) – Get Twitter, Inc. Report and Exxon (XOM) – Get Exxon Mobil Corporation Report began pulling out of Russia after it invaded Ukraine, a few big names stood steadfast on their decision to remain in the country.
They’re now reversing course.
Some Companies Took Longer to Pull Out Than Others
The parent of casual-clothing company Uniqlo, Fast Retailing (FRCOF) , had said that it would not be closing its sales or limiting sales. “Clothing is a necessity of life,” Fast Retailing Chief Executive Tadashi Yanai told the Japanese news service Nikkei last week. “The people of Russia have the same right to live as we do.”
A similar argument could be made for food products. Beverage and fast-food companies also took longer to leave.
As of Monday of this week, Coca-Cola (KO) – Get Coca-Cola Company Report, Pepsi (PEP) – Get PepsiCo, Inc. Report, Starbucks (SBUX) – Get Starbucks Corporation Report, Restaurant Brands’ (QSR) – Get Restaurant Brands International Inc Report Burger King, and McDonald’s (MCD) – Get McDonald’s Corporation Report had been operating in the country even in the face of protests and calls for boycott.
Uniqlo, Burger King and Coke Reverse Course
But the situation took a 180-degree turn as shelling of civilian areas increased and the number of Ukrainian refugees to neighboring countries hit two million. By Wednesday, all the above-mentioned companies had packed up shop and left Russia.
While Fast Retailing said that it stood “strongly against any acts of hostility,” it also named “operational challenges” as the reason for suspending operations in Russia — keeping stores stocked is, above all, a challenge when everyone from shipping companies from FedEx (FDX) – Get FedEx Corporation Report to airplane makers like Boeing (BA) – Get Boeing Company Report and Airbus (EADSY) – Get Airbus SE Report have already left the country.
“Uniqlo has made everyday clothing available to the general public in Russia too, as part of our mission,” the company said in a statement. “However, we have recently faced a number of difficulties, including operational challenges and the worsening of the conflict situation. For this reason, we will temporarily suspend our operations.”
A day behind competitors like McDonald’s and Yum Brands’ (YUM) – Get Yum! Brands, Inc. Report KFC, Burger King pulled corporate support for the more than 800 franchised restaurants operating in the country by Thursday. It also stopped the operations and supply chain necessary to keep existing restaurants running.
Previously, Restaurant Brands, which is the parent of chains like Tim Hortons and Popeyes, said that its franchises had “longstanding legal agreements that are not easily changeable.” But it pledged to commit the profits from its Russian franchises to Ukrainian refugees.
