Amazon has become the latest Western company to halt operations in Russia following the invasion of Ukraine, suspending product shipments and cutting off access to Prime Video.
Russia was not a major market for the online retail giant, making Wednesday’s announcement largely symbolic, but it adds to the flood of iconic US companies cutting ties, including McDonald’s, Coke and Pepsi.
“We have suspended shipping retail products to customers based in Russia and Belarus,” Amazon said in a statement.
“We are also suspending access to Prime Video for customers based in Russia, and we will no longer be taking orders for New World, which is the only video game we sell directly in Russia,” the company added.
Amazon has become the latest Western company to halt operations in Russia, suspending product shipments and cutting off access to Prime Video
A person walks into a McDonald’s restaurant in Moscow, Russia on Wednesday. McDonald’s says it expects to lose $50 million a month by suspending operations in Russia
Amazon does not operate dedicated online stores in Russia, but shoppers can get products shipped there from Amazon’s German outpost.
The company’s cloud computing arm, Amazon Web Services, also suspended all sales to Russia.
Amazon said it has no data centers, infrastructure or offices in Russia, and reaffirmed its long-standing policy of not doing business with the Russian government.
Meanwhile, McDonald’s said on Wednesday that temporarily closing its 847 stores in Russia would cost the fast-food chain around $50 million a month.
A cascade of major US brands, including Starbucks, PepsiCo, Coca-Cola Co and KFC, said on Tuesday they would cease all or part of their operations in Russia after Moscow invaded Ukraine.
McDonald’s, a post-Soviet era icon, runs 84% of its Russian sites itself and said it would continue to pay all of its 62,000 employees and restaurant workers.
People walk past a McDonald’s restaurant on the main street in Moscow, Russia, on Wednesday
Other costs will come from the sites it leases and supply chain operations, chief financial officer Kevin Ozan said Wednesday at a UBS conference.
“This is a really difficult and complex situation for a global company like ours,” he said.
Seven other fast-food brands with more than 2,600 combined outlets in Russia could also be financially hit by any decision to pull out, even though nearly all of those restaurants are owned and operated by independent franchisees.
Papa John’s said in a regulatory filing Wednesday that it may end up having to absorb the cost of $15.2 million in receivables associated with its master franchisee in Russia, which operates all of its 188 restaurants there.
Franchisee royalties accounted for less than 1% of Papa Johns’ total revenue in 2021, the company said.
The pizza chain also said on Wednesday that it had ceased all operational, marketing and sales support to the Russian market and was not collecting royalties from restaurants.
Its Russian franchisee owns and operates its own supply chain.
KFC owner is the latest company to suspend operations in Russia in response to the country’s invasion of Ukraine
Yum Brands Inc, the Kentucky-based parent company of the fried chicken chain, said Wednesday it was suspending operations at 70 of its at least 1,000 KFC restaurants nationwide.
Most KFC locations in Russia are owned by franchise and licensed partners, which can complicate efforts to shut down operations.
The company, which also owns Pizza Hut, also said it was finalizing an agreement to suspend operations at the pizza chain’s 50 Russian locations.
‘Yum! Brands is suspending operations of KFC-owned restaurants in Russia and finalizing an agreement to suspend all operations of Pizza Hut restaurants in Russia, in partnership with its master franchisee,” the company said.
The company added that it would donate all profits from operations in Russia to humanitarian efforts.
A major American company will withdraw from Russia
Amazon: Suspended Expeditions and Prime Video but had no physical presence.
Apple: Paused all product sales but had no outlets.
Coca Cola: All business in Russia suspended. Operation of 10 bottling plants through an authorized partner.
KFC: Parent company Yum Brands is suspending operations at 70 of its at least 1,000 KFC restaurants nationwide.
McDonald’s: Operations suspended at all 847 sites in Russia. McDonald’s will continue to pay 62,000 workers there.
Microsoft: All sales of new products suspended in Russia.
Netflix: Service suspended in Russia.
Daddy Johns: All company operations are suspended, but 188 franchise-owned establishments will continue to operate independently without company support.
PepsiCo: Suspended sales of Pepsi and other sodas but will continue to sell essential items such as baby formula. Operates two bottling plants in Russia and employs 20,000 people there.
Pizza hut: Yum Brands is finalizing an agreement to suspend operations at all of its 50 Pizza Hut locations in Russia.
Starbucks: Suspension of operations in the 130 Russian sites. Will continue to pay 2,000 workers during the shutdown.