List of Companies Leaving Russia Keeps Growing

Russia is becoming increasingly isolated as sanctions and operating boycotts continue to be ratcheted up. 

Large American companies McDonald's, Starbucks, PepsiCo and Coca-Cola have all announced they will be suspending operations in Russia because of the country’s invasion of Ukraine. McDonald's CEO Chris Kempczinski said in a statement, “our values mean we cannot ignore the needless human suffering unfolding in Ukraine." A total of 847 McDonald's locations in Russia were set to close. This decision is not to be taken lightly as operations in Russia accounted for some 9% of McDonald's global revenue in 2021.

Starbucks, Coca-Cola and PepsiCo also joined the fray, with PepsiCo stopping all products except baby formula, baby food, milk and other dairy options.

This latest news adds to the raft of companies that have already pulled the plug on Russia, including technology giants like Apple and Google.

To further add to the pressure, US President Joe Biden announced a ban on Russian energy imports. Russia had been banking on this not happening, with Russian Deputy Prime Minister Alexander Novak warning that oil could reach $300 a barrel if his country was blacklisted.

What does this mean for me? 

Russia is facing pressure from multiple fronts, with food security being the latest challenge after the country was blocked from the global banking system last week.

As a diversified trader, you are likely spotting opportunities to sell off any Russia-linked assets in your portfolio. However, the fallout will not be isolated to Russian assets alone, as the entire global economy will continue to be shaken by the armed conflict.