Starbucks is pulling out of the Russian market.
In a memo to employees Monday, the Seattle coffee giant said it decided to close its 130 stores and no longer have a brand presence in Russia. Starbucks said it will continue to pay its nearly 2,000 Russian employees for six months and help them transition to new jobs.
Starbucks' move follows McDonald's exit from the Russian market last week. McDonald's is selling its stores -- which are almost all owned by the company -- to an existing Russian franchisee. The stores won't be allowed to use McDonald's name or menu.
Starbucks' stores are owned and operated by Alshaya Group, a Kuwait-based franchise operator. A spokesperson for Alshaya referred questions to Starbucks on Monday.
Starbucks entered the Russian market in 2007. In early March, after the Russian invasion of Ukraine, Starbucks announced that it would keep its Russian stores open but donate any profits to humanitarian relief efforts in Ukraine.
But a few days later -- after Coca-Cola, PepsiCo, and others temporarily halted their business in Russia -- Starbucks changed course and temporarily closed its Russian stores.
McDonald's Corp. quit the country this month, selling its business there to a former Siberian coal mine owner -- putting an end to an era that began in 1990, when tens of thousands lined up in Moscow's Pushkin Square for the opening of its first branch. A note to employees from McDonald's boss Chris Kempczinski cited "the humanitarian crisis caused by the war."
These moves underscore Russia's increasing political and economic isolation, the result of international sanctions and other pressure on companies to quit the country, in many cases ending relationships that stretch back decades.
"We condemn the unprovoked, unjust and horrific attacks on Ukraine by Russia, and our hearts go out to all those affected," Kevin Johnson wrote colleagues in March, before he retired as chief executive officer. "The invasion and humanitarian impact of this war are devastating and create a ripple effect that is felt throughout the world.
"Through this dynamic situation, we will continue to make decisions that are true to our mission and values and communicate with transparency," Johnson wrote.
Information for this article was contributed by Dee-Ann Durbin of The Associated Press, Melina Delkic of The New York Times and Max Abelson of Bloomberg News (WPNS).