Russia’s invasion of Ukraine has prompted US companies across all sectors to re-evaluate their businesses. Headlines suggest an exodus. The reality is more complicated. Instead of pulling out of the country, most multinationals are simply putting business there on hold.
McDonald’s, Levi’s, PepsiCo and Starbucks are among the US companies temporarily suspending operations in Russia. The Golden Arches, which has 850 restaurants in the country, will continue to pay employees there. Pepsi will no longer sell sodas but will continue to sell “daily essentials” like milk and baby food.
Suspending or cutting back services makes business sense. US sanctions apply pretty well everywhere for multinationals. Russian sanctions will apply only in Russia. Cutting the country loose is an easy choice for western business.