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© Reuters. FILE PHOTO: The Starbucks logo is seen outside a Starbucks cafe in Warsaw March 6, 2011. REUTERS/Kacper Pempel
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(Reuters) -Starbucks Corp said on Monday it will exit the Russian market after nearly 15 years as the coffee chain joins McDonald's Corp (NYSE:MCD) in marking the end of the presence of some of the top Western brands in the country.
Seattle-based Starbucks (NASDAQ:SBUX) has 130 stores in Russia, operated by its licensee Alshaya Group, with nearly 2,000 employees in the country.
Starbucks' decision to wind down its operation in Russia is different to the approach some other foreign companies have taken.
McDonald's last week said it was selling its restaurants in Russia to its local licensee Alexander Govor to be rebranded under a new name, but will retain its trademarks, while France's Renault (EPA:RENA) is selling its majority stake in Russia's biggest carmaker with an option to buy back the stake.
A slew of other Western companies, including Imperial Brands (OTC:IMBBY) and Shell (LON:RDSa), are cutting ties with the Russia market by agreeing to sell their assets in the country or handing them over to local managers.
In March, Starbucks shuttered its stores and suspended all business activity in Russia, including the shipment of its products to the country, following Moscow's invasion of Ukraine.
The company, which opened its first outlet in Russia in 2007, said it will continue to support its employees there, including paying them for six months.
Starbucks did not provide details on the financial impact of the exit. McDonald's had said it would take a primarily non-cash charge of up to $1.4 billion.
UPDATE 4-McDonald's to sell Russia restaurants to local operator, rebrand - Reuters News'Golden Arches' come down near Moscow as McDonald's Russia rebrand begins - Reuters NewsFACTBOX-Companies sell their businesses in Russia - Reuters NewsFACTBOX-The Great Rebrand: Western business reborn in Russia under new names - Reuters NewsFACTBOX -Companies count the cost of ditching Russia - Reuters News
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