Some of the biggest icons of Western capitalism announced on Tuesday (8) the suspension of their activities in Russia, increasing economic pressures against Moscow after a series of demonstrations of discontent around the world.
McDonald’s, Coca-Cola, PepsiCo and Starbucks, among others, said they would not operate in the country indefinitely, following the path of companies in the oil and gas sector and other famous brands, such as Ikea and Levi Strauss & Co.
On the same day as the announcements, and seeking to ease sanctions that are beginning to hamper the supply of Russian stores and supermarkets — bringing to mind scenes from the Soviet period — President Vladimir Putin went on television to announce a broad package of aid to the poorest population.
The objective is to compensate for losses that state pensioners have been suffering from the devaluation of the ruble and the consequent inflation, in addition to strengthening social programs that serve around 19 million Russians (or 13% of the population) below the income line. poverty, according to World Bank criteria.
With the measures, laid out in a 39-page document, Putin seeks to neutralize some of the discontent that is spreading among the Russian people as a result of Western sanctions – which help fuel waves of demonstrations that have left more than 10,000 detainees. The leader has even compared the punishments to a declaration of war.
Among the companies that suspended business in Russia this week, McDonald’s decision carries the most symbolic weight.
The Chicago-based fast-food chain began operating in Moscow’s then-stern Pushkin Square on January 31, 1990, less than three months after the fall of the Berlin Wall in November 1989 — and therefore even before the end of the Soviet empire, whose republics dissolved in December 1991.
Plans for opening up had been negotiated since the early 1980s, as part of the process of opening up the regime to the West.
On opening day, Muscovites formed gigantic lines to visit the restaurant; an estimated 30,000 people walked into McDonald’s that day alone. Many kept sandwich wrappers as souvenirs of capitalism.
The inauguration of the second unit of the network, two years later, would be attended by the then reformist Russian president, Boris Yeltsin (1931-2007).
McDolnald’s announced on Tuesday that the suspension would include all 847 restaurants in Russia, but said the chain’s 62,000 employees would continue to be paid until a further decision on the matter.
The chain owns and operates 84% ​​of its restaurants on Russian territory, with the rest being managed by franchisees – who will also close their doors.
“Our values ​​mean that we cannot ignore the unnecessary human suffering unfolding in Ukraine,” Chief Executive Chris Kempczinski said in an official message from the company.
The suspension, however, only came after a series of consumer protests and, finally, pressure from the New York State Common Retirement Fund, an American pension fund with assets of more than US$ 280 billion that holds shares in the company.
McDonald’s also operates 108 restaurants in Ukraine, as well as corporate offices, employing about 10,000 people in the country now under invasion. They are also closed and employees are expected to be paid. Russia and Ukraine accounted for about 9% of the restaurant chain’s revenue last year.
Last week, the same New York State Common Retirement Fund had pressured PepsiCo, in which it is also a shareholder, to suspend business with Russia, which was announced on Monday.
In this case, the beverage maker had revenues of $3.4 billion in Russia in 2021, the third largest share, behind only the United States and Mexico.
