Who’s Still Doing Business With Russia?
If you have applauded and support the US-based companies that have stopped doing business with Russia because of Vladimir Putin’s deadly invasion in Ukraine, you may want to know about these companies that are still doing business with Russia.
While more than 300 US companies have cut ties with Moscow, including some big names like McDonald’s and Coca-Cola, many have not. Among them are US consumer favorites, including Subway and Mondelez. Dunkin’ Donuts and Hotel giant Marriott can also be found on the docket of corporations that have not suspended or reduced their exposure to Russia’s market.
Since President Vladimir Putin’s war on Ukraine began on February 24 — which has so far led to 2 million refugees and more than 1,000 civilian casualties recorded by the United Nations, Yahoo Finance says that around 330 companies have withdrawn from Russia in protest of the Kremlin as of March 10, Still, according to a list compiled by Yale professor Jeffrey Sonnenfeld and his research team 39 continue to operate in the country despite mounting pressure to take action to cease or reduce such operations.
Dunkin’ Donuts operates 20 locations in Russia, according to a company spokesperson. Subway has 446 franchise locations in the country. American multinational food and beverage maker Mondelez — the parent of brands like Oreo, Ritz, and Chips Ahoy! — has an even bigger footprint in the country that it has yet to give up. Mondelez generates about 3.5% of its revenue from Russia, or about $1 billion.
Meanwhile, Marriott International racks in 4.3% of its revenue, or about $440 million, from Russian operations, per Sonnenfeld’s data.
The list remains fluid, but US publicly-traded companies that have failed to cease business in Russia include cosmetics company Coty Inc., pharmaceutical company AbbVie, and cloud computing company Citrix.
After mounting pressure, Burger King, which has more than 800 franchise locations across Russia according to Sonnenfeld’s research, became the latest fast-food restaurateur to halt all corporate support to the Russian market in response to the war.
The company joins other fast-food peers that have arrived late to the party but heeded to criticism, including Starbucks, PepsiCo, and the aforementioned McDonald’s and Coke.
“We serve millions of Russian customers each day who count on McDonald’s,” McDonald’s CEO Chris Kempczinski said in a statement Tuesday. “At the same time, our values mean we cannot ignore the needless human suffering unfolding in Ukraine.”
According to new MKM Partners research note, McDonald’s suspending operations in Russia will cost the company $50 million a month.
Sonnenfeld’s list can be found here and is updated every hour to reflect new announcements from companies in real-time.
“When this list was first published on February 28, only several dozen companies had announced their departure,” he said on the website.
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