Sunday, March 13, 2022

American Products, Russian Consumers

 


"Over the years, McDonald's has become, in the eyes of Russians, associated with youth and low-level managers. Long forgotten was its symbolism -- of the Western world arriving in the USSR. The first McDonald's in Russia opened in Moscow in January 1990, more than a year before the Soviet Union collapsed in December 1991. When McDonald's shuttered this week, it signaled the end of the West in authoritarian Russia. The days of our merry global consumption were over, and it pointed to darker ones ahead. Of course, compared to the horror happening in Ukraine, the closure of brands looks insignificant. They are just symbols of the economic collapse in Russia, provoked by the invasion -- and subsequent sanctions." (Words of Andrei Kolesnikov, a Russian writer

 

 No More Coca-Cola

S9
You can't get a coke any more in Russia. The Coca-Cola 
company has suspended operations there to express its view of the war. 

After several days of public opinion in the US that pressured the Coca-Cola Company to close its Russian operations, they announced: "Our hearts are with the people who are enduring unconscionable effects from these tragic events in Ukraine. We will continue to monitor and assess the situation as circumstances evolve." (Coca-Cola Company Statement March 8, 2022)

McDonald's Has Closed 850 Russian Restaurants


In the 1990s, when McDonald's was just establishing its operations in Russia, there was a theory called
the "Golden Arches Theory of Conflict Prevention." According to this theory, no two countries with McDonald's restaurants had ever been at war with each other, because their economic interests were aligned to give them an incentive for peace. "The admittedly semi-serious theory offered an easy shorthand for a broader belief at the time that common economic interests and increasing global connectedness would supersede the causes of conflict between nations," wrote Adam Chandler in the Washington Post a few days ago. (link)

The theory was invented by New York Times columnist Thomas Friedman. Soon after he published it, Chandler pointed out, several wars broke out that disproved it. "Today, one trivial side effect of Russia’s ongoing invasion of Ukraine is that it has brought the theory back for examination once again. And while Friedman’s premise is as wrong as it always has been, it’s also increasingly clear that it misunderstood something fundamental about the global order — and the role of the United States in it. What is implicit in the Golden Arches Theory of Conflict Prevention is the idea that the economic system upholding it would be American-led. This, after all, is why McDonald’s, the quintessential American export, is so important."

McDonald's, which was experiencing significant public pressure from American and European customers to close in Russia, stated this: "our values mean we cannot ignore the needless human suffering unfolding in Ukraine ... McDonald’s has decided to temporarily close all our restaurants in Russia and pause all operations in the market. ... As we move forward, McDonald’s will continue to assess the situation and determine if any additional measures are required. At this juncture, it’s impossible to predict when we might be able to reopen our restaurants in Russia. We are experiencing disruptions to our supply chain along with other operational impacts. We will also closely monitor the humanitarian situation." (McDonald's statement, March 8, 2022)


This did not prevent war?

Another Drink You Can't Get Today in Russia

Like Coke and McDonald's, Starbucks has suspended operations in Russia and closed 130 coffee shops.

Maybe Starbucks, McDonald's, and Coke couldn't change fundamental Russian values?

Will this pressure have any effect?

Since Russia attacked Ukraine, at least 300 other Western corporations have closed or limited their operations in Russia. International banking operations, particularly, have shut out Russian banking activity, including access to Russia's government funds in other currencies. Product and service providers that have reduced or cancelled Russian commerce include several aircraft manufacturers (meaning no parts for most planes flying in Russia), Shell Oil, Ikea, Pizza Hut, L'Oreal luxury products, Ferrari and other automobile companies, Apple Computers, and Netflix. Visa and Mastercard have limited Russian charging privileges. AirB&B has suspended operations. Pharmaceutical companies, however, have so far expressed a sense of obligation to supply crucial medications to the Russians, and a few other companies like Mars and Nestle may still be doing business there.

Economic commentators have been explaining what these disruptions mean for the Russian economy and Russian consumers. The ruble, of course, has been in a severe decline since financial sanctions started at the beginning of the war, with implications for Russian businesses of all types. It’s a very complicated situation, obviously.

I hope for the sake of the Ukrainian people, that there's an end in sight, but I don't see it. It goes without saying that the suffering of the Ukrainians under siege is infinitely more painful than any impact from the sanctions against Russia. Humanitarian considerations motivate some of the choices of governments and corporations in determining sanctions against Russia. When attacking at least 9 hospitals and many people’s homes, the Russians didn’t seem to be hampered by any humanitarian considerations.


“Ukraine's national poet Taras Shevchenko with the smouldering remains of residential buildings in Borodyanka, northwest of Kyiv, in the background.“ — Tweet by Andrei Kolesnikov

Blog post by mae sander for mae food dot blogspot dot com.

Photos from a variety of websites.

21 comments:

Anne (cornucopia) said...

The world can keep piling on sanctions until the weight of them forces Russia to stop their Evil behavior.

DVArtist said...

Sanctions are not and will not detour the mad man at the helm. I know it takes a lot for a company to remove itself from a country. For the most part these companies have done what they said they would do. Except Shell oil. They may be out now but not before taking advantage of the evil and passing it along at the pumps with highest prices. https://www.msn.com/en-us/money/markets/shell-is-buying-russian-oil-again-as-prices-skyrocket/ar-AAUJqqB?li=BBnbfcL&fbclid=IwAR1WgXtvAGPW1_OYIGv7QduDeRQ-aFZuci7tbfb_46tZKBbCPdxCJMqFoVQ
They now say how remorseful they are for doing that. Give me a flippen break. Here is another link.
https://www.reuters.com/business/energy/shell-withdraw-russian-oil-gas-2022-03-08/

Iris Flavia said...

It´s just so sad that the Russian people suffer because of ONE madman.
Next, Europe. I have maybe a minipli of Russian blood in me and... who cares anyways?!
We are all people, why can´t there be simply togetherness and peace.

Jenn Jilks said...

It is tragic. Just tragic, but there are so many people trying to help.

Jeanie said...

You nailed it all right here: " It goes without saying that the suffering of the Ukrainians under siege is infinitely more painful than any impact from the sanctions against Russia."

eileeninmd said...

Hello,
More companies should stop doing business with Russia. I wish for an end to this invasion. Take care, enjoy your day and have a happy new week!

Tandy | Lavender and Lime (http://tandysinclair.com) said...

It's all too little, too late. The sanctions are affecting the poor and Putin is still carrying on with his War.

Bleubeard and Elizabeth said...

The closings should be an indication to the uninformed Russians about the war. After all, many are still unaware of the tragedy that is going on in Ukraine because the informed are not allowed to talk about it for fear of serving prison terms. Too bad some of these companies had to feel public pressure before closing their doors in Russia.

Divers and Sundry said...

It'll affect the Russian people, but I'm not sure what it would take to affect Putin. It'll take more than what's been done so far, that's clear, and just look at the businesses that remain happily working in Russia.

Sallie (FullTime-Life) said...

It's heartbreaking. The whole world is against him, but nothing seems to get through to the mad man who is causing all of this.

My name is Erika. said...

I heard this morning that China might jump in to fill the gaps of these companies pulling out of Russia. I think that's a little scary too. Hopefully they will not get involved in the war, but if they do fill in the economic gaps, that certainly doesn't put a lot of pressure on Putin the leave the Ukraine. This situation is so sad; those poor people in Ukraine, and I certainly hope we are not spinning out of control to world war 3. OK, this is not a very happy comment for T day, is it? But I do hope yours is, and you enjoy that delicious pineapple upside cake you also posted. hugs-Erika

Carola Bartz said...

I'm not sure whether these sanctions have an impact at all. The people in Russia will feel it, but Putin? He doesn't care about his own people, and of course he doesn't care about Ukrainians - or anyone. Maybe if no one would import gas and oil from Russia anymore, that might have an impact because he will run out of money. But I doubt that this will ever happen.

nwilliams6 said...

So well said, Mae. We see sanctions through our own filters, they just don't mean the same to government led Russia. Wish they did. Pray that changes since it is all we seem destined to offer at this time. Happy T-day. Hugz

Valerie-Jael said...

I'm not sure that the sanctions will help, who knows? It is a very sad situation there, I just hope it will somehow find an end before Ukraine is totally crusyhed. Valerie

Lisca said...

I don't think anction ill have any effect, but it certainly makes a statement. The gaps will be filled by China and that is also very scary. The Russian people probably have no idea what is happening. I heard this morning that an emloyee of a tv station ran into the studio where the news was being broadcast, shouting: It's all lies! And holding up a banner for all to see.
It's all very sad and the end is nowhere in sight.
Happy T-Day,
Hugs,
Lisca

Linda Kunsman said...

This is so sad and heartbreaking all around. There is no good in this! And how one evil person can have so much power is beyond me...

Let's Art Journal said...

What is the world coming too, this whole situation is so sad and heartbreaking! Hugs Jo x

CJ Kennedy said...

The only ones that may feel the impact of the sanctions are the Russian people. Putin and his cronies don't care.

Kate Yetter said...

It's awful, the suffering going on. I agree with everyone that the sanctions are doing nothing. It's a little bit, too late.
Happy Tea Day,
Kate

gluten Free A_Z Blog said...

It is a terrible situation without an easy answer. Your post is very thought provoking and certainly makes us wonder what would help. Certainly McDonalds is taking a strong commendable stand as well as Coca Cola. However, I'm not sure that that lack of fast food and high sugar drinks will be a tragic loss for the Russian people. Our hearts go out to the people of Ukraine,

pearshapedcrafting said...

Its sad that Putin will not care at all that Russian people will go without things they have become used to and probably not know why. I even wonder if most of the soldiers in the Russian army know what they are firing at. This was a very interesting post Mae. We have refugees arriving but it seems to be such a hopeless situation. Happy T Day, Chrisx