Business

Coke, McDonald’s, Pepsi, Starbucks join exodus out of Russia

Published

2 years ago

09/03/2022

MNN

Global brands bow to public pressure and suspend their operations in Russia, joining international corporate chorus of outrage over Moscow’s invasion of Ukraine.

McDonald’s, Starbucks, Coca-Cola, PepsiCo and General Electric –– ubiquitous global brands and symbols of US corporate might –– all have announced the temporary suspension of their businesses in Russia in response to the country’s invasion of Ukraine.

“Our values mean we cannot ignore the needless human suffering unfolding in Ukraine,” McDonald’s President and CEO Chris Kempczinski said in an open letter to employees on Tuesday.

The Chicago-based burger giant said it will temporarily close 850 stores but continue paying its 62,000 employees in Russia “who have poured their heart and soul into our McDonald’s brand.”

Last Friday, Starbucks had said that it was donating profits from its 130 Russian stores –– owned and operated by Kuwait-based franchisee Alshaya Group –– to humanitarian relief efforts in Ukraine.

But on Tuesday, the company changed course and said it would temporarily close those stores.

Alshaya Group will continue to pay Starbucks’ 2,000 Russian employees, Starbucks President and CEO Kevin Johnson said in an open letter to employees.

Coca-Cola Co. announced it was suspending its business in Russia, but it offered few details.

Coke’s partner, Switzerland-based Coca-Cola Hellenic Bottling Co., owns 10 bottling plants in Russia, which is its largest market. Coke has a 21 percent stake in Coca-Cola Hellenic Bottling Co.

Pepsi, based in Purchase, New York, said it will suspend sales of beverages in Russia. It will also suspend any capital investments and promotional activities.

General Electric also said in a Twitter post that it was partially suspending its operations in Russia.

GE said two exceptions would be essential medical equipment and support for existing power services in Russia.

McDonald’s treading on thin ice

McDonald’s is among those to take the biggest financial hit.

Unlike Starbucks and other fast-food companies like KFC and Pizza Hut, whose Russian locations are owned by franchisees, McDonald’s owns 84 percent of its Russian stores.

McDonald’s has also temporarily closed 108 restaurants it owns in Ukraine and continues to pay those employees.

In a recent regulatory filing, McDonald’s said its restaurants in Russia and Ukraine contribute 9 percent of its annual revenue, or around $2 billion last year.

McDonald’s said on Tuesday it has donated more than $5 million to its employee assistance fund and to relief efforts.

Pressure had been mounting on companies that remained in the country.

Long history in Russia

Some of the companies have a long history of operating in Russia. PepsiCo entered the Russian market in the early 1960s, at the height of the Cold War, and helped to create common ground between the US and the Soviet Union.

Later, McDonald’s was one of the first US fast food companies to open a store in Russia, a sign that the Cold War had thawed.

On January 31, 1990, thousands of Russians lined up before dawn to try hamburgers –– many for the first time –– at the first McDonald’s in Moscow. By the end of the day, 30,000 meals had been rung up on 27 cash registers, an opening-day record for the company.

But since the Ukraine invasion last month, many corporations have ceased operations in Russia in protest.

Source: TRT

Business

Maldives records USD 802.2 million in first four months

Published

10 hours ago

19/05/2024

The Ministry of Finance has disclosed that the state received USD 802.2 million in revenue during the first four months of this year, marking a significant 4.2% increase compared to the same period last year.

This revenue breakdown comprises USD 660 million in tax revenue, USD 129.4 million in non-tax revenue, and USD 5 million in aid to administration.

Tax revenue is primarily derived from Import Duty, Business and Property Tax (BPT), and Goods and Service Tax (GST), with figures as follows:

– Import Duty: USD 60.3 million
– BPT: USD 168.2 million
– GST: USD 375.2 million
– Green Tax: USD 27 million
– Airport Service Charge and Departure Tax: USD 25.1 million

Moreover, financial data indicates that the current administration has notably reduced overall expenses compared to the previous year.

Total government expenditures for the first four months of this year stand at USD 925.1 million, a significant decrease from last year’s USD 1.04 billion. This includes USD 724.6 million in recurrent expenses and USD 194.1 million in capital expenditure. Recurrent expenses prominently consist of USD 284.7 million in salaries and allowances and USD 433.4 million in administrative expenses, while capital expenditures primarily involve infrastructural development projects.

Source(s): PsmNews

Business

CWEIC office to establish in Maldives, Janah as Chair

Published

3 days ago

16/05/2024

Commonwealth Enterprise and Investment Council (CWEIC) has announced decision to establish its office in the Maldives, and appoint President Dr. Mohamed Muizzu’s Principal Advisor Mohamed Ali Janah as its Country Chair.

CWEIC in a statement on Thursday, said the office will be established to connect the Maldives government with international investors and businesses.

The Maldives hub office of CWEIC will play a vital role in seeking prospective investment opportunities from all 56-member nations of the Commonwealth. The office will also enhance strategic alliances and partnerships between these countries and the Maldivian government.

Veteran entrepreneur, Janah boasts of over 30 years of business relations with the Middle East.

Source(s): sun.mv

Business

Dubai company awarded the development of SEZ

Published

7 days ago

12/05/2024

An agreement has been signed by the Maldivian administration with UAE’s International Free Zone Authority (IFZA) to develop Special Economic Zones (SEZ) in the Maldives.

The agreement, officially co-signed by Minister of Economic Development and Trade Mohamed Saeed and IFZA Chairman Martin Gregers Pedersen during a special ceremony, marks a significant milestone in economic development.

Speaking at the ceremony, Minister Saeed emphasized the timeline for finalizing the agreement, committing to reach a consensus within the next four months. As part of the agreement, Fonadhoo in Kaafu Atoll will be transformed into a financial hub, featuring a new financial center and a bridge connecting Male’ and Hulhule. IFZA will bear the expenses for these developments.

The Ministry of Economic Development and Trade further highlighted plans for the Economic Gateway project in Ihavandhippolhu, aiming to attract investors with IFZA’s expertise. Addressing the attendees, Chairman Pedersen expressed confidence in the success of the project, underscoring collaborations with investors to further enhance opportunities in the Maldives.

The development of SEZs remarkably aligns with the President Dr. Mohamed Muizzu’s vision to diversify the economy and stimulate financial growth. The Maldivian administration is optimistic about attracting future investments and positioning the country as a desirable destination for business opportunities.

Source(s): PsmNews