While more companies join Russian boycott, some are hesitant to halt operations

McDonald’s and Starbucks branches remain open in Moscow despite announcements, video footage shows; tobacco giant BAT says it has a ‘duty of care’ to all its employees

Tobias (Toby) Siegal is a breaking news editor and contributor to The Times of Israel.

Women walk in front of a McDonald's restaurant in central Moscow on March 9, 2022 (Photo by AFP)
Women walk in front of a McDonald's restaurant in central Moscow on March 9, 2022 (Photo by AFP)

As more and more major Western brands have taken a stand against Russia and halted their operations in the country over the ongoing war in Ukraine, some seemed to be trying to play both sides.

McDonald’s, Starbucks, Pepsi and Coca-Cola all announced over the past couple of days that they would temporarily halt all activity in Russia due to its ongoing invasion of Ukraine.

“The conflict in Ukraine and the humanitarian crisis in Europe has caused unspeakable suffering to innocent people. As a System, we join the world in condemning aggression and violence and praying for peace,” a statement issued by McDonald’s on Tuesday read.

The company said that while it employs 62,000 people in Russia “who have poured their heart and soul into our McDonald’s brand,” it “cannot ignore the needless human suffering unfolding in Ukraine” and that it would temporarily shut down all of its restaurants in the country.

Starbucks said it would shut down 100 cafes it operates in Russia.

However, footage captured by Israelis in Moscow and aired by Channel 12 on Wednesday showed McDonald’s and Starbucks branches in Russia’s capital remain open.

A McDonald’s branch in Moscow open on March 9, 2022. (Screen capture/Channel 12)

The footage also showed a supermarket full of produce, apparently not impacted by the sanctions announced against the country.

Other companies have expressed reluctance to halt all operations in the country, citing the large Russian market and concern for their employees.

British American Tobacco, one of the so-called Big Four tobacco producers, has suspended all planned capital investment in Russia but continues to operate there.

The company said it had a “duty of care” to all its 2,500 employees in the country.

“Furthermore, we are scaling our business activities appropriate to the current situation, including rationalizing our marketing activities,” the company said, adding that it’s complying with all international sanctions related to the conflict.

This is a Monday, July 24, 2017 file photo of the logo for British American Tobacco appears above a trading post on the floor of the New York Stock Exchange. (AP Photo/Richard Drew/File)

In contrast, another major tobacco producer, Imperial Brands, said Wednesday it would halt all operations in Russia, including production at its factory in Volgograd and cease all sales and marketing activity.

Danish brewer Carlsberg on Wednesday said it would begin a strategic review of its business in the country, according to a report by Reuters.

“The future is highly unpredictable and we are reviewing a full range of strategic options for our Russian business,” chief executive Cees ‘t Hart said in a statement.

According to the report, the company will keep its eight breweries in Russia operational but will halt all advertising and selling of its flagship beer brand, as well as suspend all exports to the country.

Illustrative: Carlsberg beer cans. (AP Photo/Sang Tan, File)

Meanwhile, other companies have taken a more active role in the conflict.

E-commerce giant Amazon announced Wednesday that it has suspended all shipments to Russian customers as well as access to online content.

“We are also suspending access to Prime Video for customers based in Russia, and we will no longer be taking orders for New World, which is the only video game we sell directly in Russia,” the company said in a statement.

The announcement comes after chief executive Andy Jassy said last week that the company would use its expertise in cybersecurity and logistics to assist Ukraine.

Amazon’s Andy Jassy in 2019 (video screenshot)

“We’re supporting humanitarian relief NGOs on the ground with cash donations from Amazon and our employees, logistics to get supplies to people needing them, and cyber security assistance to companies and governments,” Jassy tweeted.

Twitter went as far as launching a privacy-protected version of its site that can bypass surveillance and censorship after Russia restricted access to its service in the country.

Facebook has said it was looking for a similar solution.

Russia has blocked access to Facebook and has put limits on Twitter in an attempt to restrict the flow of information about its war in Ukraine.

The Associated Press contributed to this report.

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