(NewsNation) — If you’ve watched the news lately, you might think it’s hard to find any U.S. business to spend money with in Moscow.
However, while places like McDonald’s and Starbucks have closed their doors, you can still book a room in a Marriott, buy drugs manufactured by Eli Lilly or get a meatball sub from Subway. The rational behind staying open is complex and unique to each business, but with each passing day more and more companies are deciding it’s not worth it.
While you can’t get a cheeseburger from McDonald’s, you can still order from Subway. The difference is that McDonald’s owns most of its Russian restaurants, while all of the Subways are owned by individual franchisees. This example highlights how complex international business can be for corporations, especially when things like sanctions and national pride get involved.
Evan Nierman, CEO of Red Banyay Crisis PR, told NewsNation’s Paul Gerke, “It’s really on a case by case basis and I think these organizations are making a business decision that, in retrospect, they may look back on and say, well, we wish we hadn’t. But I suspect that in many cases, the organizations that are continuing to do business in Russia feel like it’s a necessity in order to continue the operations.”
Amway, Bridgestone Tire, Mondelez, Deustschebank and General Mills are among dozens of other companies still doing business in Russia. Some have integral manufacturing there, some have limited control over franchisees and others are staying open to provide Russians essential food, medicine and clothing.
Some of the places continuing to do business in Russia have announced charitable efforts in response to public backlash. Subway, for example, is donating profits from its Russian stores to humanitarian efforts in Ukraine.
