Amazon has become the latest Western company to suspend operations in Russia due to the invasion of Ukraine, suspending product deliveries and cutting off access to Prime Video.
Russia has not been a major market for the e-commerce giant, so Wednesday’s announcement is largely symbolic, but it adds to a spate of iconic U.S. companies severing ties, including McDonald’s, Coca-Cola and Pepsi.
“We have suspended shipping of retail products to customers in Russia and Belarus,” Amazon said in a statement.
“We are also suspending access to Prime Video for customers in Russia and will no longer accept orders for New World, the only video game we sell directly in Russia,” the company added.
Amazon has become the latest Western company to stop operations in Russia, suspend product deliveries and cut off access to Prime Video.
A man enters a McDonald’s restaurant in Moscow, Russia Wednesday. McDonald’s says it expects a $50 million monthly loss due to the suspension of operations in Russia.
Amazon does not have specialized online stores for Russia, but customers can receive items shipped from the Amazon branch in German.
The company’s cloud computing division Amazon Web Services has also suspended all sales in Russia.
Amazon said it has no data centers, infrastructure or offices in Russia and confirmed that it has a long-standing policy of not doing business with the Russian government.
Meanwhile, McDonald’s said on Wednesday that temporarily closing 847 stores in Russia would cost the fast food chain about $50 million a month.
A range of major US brands, including Starbucks, PepsiCo, Coca-Cola Co and KFC, said on Tuesday they would cease some or all business in Russia following Moscow’s invasion of Ukraine.
McDonald’s, a post-Soviet icon, operates 84 percent of its locations in Russia itself and has said it will continue to pay all of its 62,000 employees and restaurant workers.
People walk past a McDonald’s restaurant on Main Street in Moscow, Russia Wednesday.
Other costs will be related to leased sites and supply chain operations, chief financial officer Kevin Ozan said at a UBS conference on Wednesday.
“This is a really difficult and challenging situation for a global company like us,” he said.
Seven other fast food brands with more than 2,600 locations in Russia could also be affected by any exit decisions, even though almost all of these restaurants are owned and operated by independent franchisees.
Papa John’s said Wednesday to the regulator that it will eventually have to cover the cost of $15.2 million in receivables related to its main franchisee in Russia, which operates all of its 188 restaurants in Russia.
Royalties from franchisees accounted for less than 1% of Papa Johns’ total revenue in 2021, according to the company.
The pizzeria chain also said on Wednesday that it has ceased all operational, marketing and business support and interaction with the Russian market and that it does not receive any royalties from local restaurants.
The franchisee in Russia owns and manages its own supply chain.
The KFC owner is the latest company to suspend business 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 70 of its at least 1,000 KFC restaurants nationwide.
Most KFC locations in Russia are owned by franchisees and licensed partners, which could complicate efforts to shut down operations.
The company, which also owns Pizza Hut, also said it was finalizing an agreement to suspend all 50 Russian pizzeria chain locations.
“Yum! Brands is suspending KFC-owned restaurants in Russia and is finalizing an agreement to suspend all Pizza Hut restaurants in Russia in partnership with its main franchisee.
The company added that it would donate all profits from operations in Russia to humanitarian aid.
The largest US business leaves Russia
Amazon: Suspended shipments of Prime Video as well, but was not physically present.
Apple: Suspended sales of all products, but had no retail outlets.
Coca-Cola: All activities in Russia have been suspended. Managed 10 bottling plants through a licensed partner.
KFC: Parent company Yum Brands is suspending 70 of its at least 1,000 KFC restaurants in the country.
McDonald’s: Suspended at all 847 locations in Russia. McDonald’s will continue to pay 62,000 workers there.
Microsoft: All sales of new products in Russia have been suspended.
Netflix: Service suspended in Russia.
Papa John’s: All corporate operations are suspended, but 188 franchisee-owned locations will continue to operate independently without corporate support.
PepsiCo: Suspended sales of Pepsi and other carbonated drinks, but will continue to sell essentials such as baby food. Operates two bottling plants in Russia employing 20,000 people.
Pizza Hut: Yum Brands finalizes an agreement to suspend all 50 Pizza Hut locations in Russia.
Starbucks: suspension of work in all 130 establishments in Russia. Will continue to pay 2000 workers during the shutdown.