McDonald's, Coca-Cola Join US Firms Halting Russia Operations

General view of a McDonald's sign, Stoke-on-Trent, Britain, June 1, 2020. (Reuters)
General view of a McDonald's sign, Stoke-on-Trent, Britain, June 1, 2020. (Reuters)
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McDonald's, Coca-Cola Join US Firms Halting Russia Operations

General view of a McDonald's sign, Stoke-on-Trent, Britain, June 1, 2020. (Reuters)
General view of a McDonald's sign, Stoke-on-Trent, Britain, June 1, 2020. (Reuters)

McDonald's, Coca-Cola and Starbucks on Tuesday bowed to public pressure and suspended their operations in Russia, joining the international corporate chorus of outrage over Moscow's invasion of Ukraine.

Several of these companies, symbols of American cultural influence in the world, have been the subject of boycott calls on social media as investors have also begun to ask questions about their presence, AFP said.

"We cannot ignore the needless human suffering unfolding in Ukraine," the fast-food giant said, announcing the temporary closure all 850 restaurants in Russia, where it employs 62,000 people.

Starbucks, Coca-Cola and PepsiCo announced their own decisions to halt or restrict business in quick succession, noting the growing human cost of the invasion.

PepsiCo said that despite halting sales in Russia of its flagship beverage, as well as 7Up and Mirinda, it would continue to offer products like milk and baby food.

"By continuing to operate, we will also continue to support the livelihoods of our 20,000 Russian associates and the 40,000 Russian agricultural workers in our supply chain," PepsiCo CEO Ramon Laguarta said in a statement.

Starbucks, which has 130 Kuwaiti conglomerate-run coffee shops in Russia, said all operations, including product shipments, will be suspended.

A team from Yale University that keeps a list of companies with a significant presence in Russia said about 290 have announced withdrawal from the country since it invaded neighboring Ukraine, reminiscent of "the large-scale corporate boycott of Apartheid South Africa in the 1980s."

About 30 multinationals still remain on the list of companies with significant exposure to Russia.

- Legitimate reasons? -
Some companies, however, have noted the limits of their influence is halting business.

Yum! Brands, whose 1,000 or so KFC restaurants and 50 Pizza Hut locations in Russia are almost all independently owned, announced Tuesday that it was halting operations at company-owned KFC locations.

It said it was "finalizing an agreement" to do the same with its Pizza Hut restaurants, adding that all profits from operations in Russia will be redirected to "humanitarian efforts."

Some businesses may have legitimate reasons to stay, several experts in ethics and communications strategy told AFP.

Companies may be hesitant to leave because they think they can mediate or because they make essential products such as pharmaceutical ingredients, said Tim Fort, a professor of business ethics at Indiana University.

But he said they have to pick a side "and it doesn't strike me as this being very difficult to pick" given Russia's human rights and conflict law violations.

"Any one company leaving the country isn't going to tip the balance... but there's a cumulative effect," Fort noted.

- 'What's going on?' -
He said a company as well-known as McDonald's can have influence in Russia at a time when the general population has almost no access to sources of information other than the official messaging on the invasion.

Russians can "survive without the Big Mac," but they may ask "why is McDonald's closed? What's going on? It's a more powerful signal in that sense," Fort said.

Richard Painter, a professor at the University of Minnesota, said the companies "should think about the message that needs to be emphasized: that Russia cannot do this to Ukraine... while at the same time participating in the international economy."

The economic sanctions imposed on Russia with broad consensus among Western governments along with the voluntary withdrawal of multinationals "is really the best way to deal with Russia," said Painter, a former White House ethics lawyer.

Brian Berkey, who specializes in corporate ethics at the University of Pennsylvania, said some companies may be betting the criticism will ultimately subside.

Other crisis situations, such as the Israeli-Palestinian conflict, led to calls for boycotts against certain companies but without much effect.

Support for such initiatives is not always unanimous even though most people "in the United States and in Europe are unified in thinking that what Russia is doing is clearly unacceptable," he said.

Mark Hass, a communications specialist at Arizona State University, said the economic interest of companies that have chosen to stay in Russia "outweighs the reputational one."

But "if social media starts identifying you as a company that's willing to do business with an autocratic aggressor, who's slaughtering thousands of people in the Ukraine, you're in big trouble," Hass said.

"And it will hurt business more broadly than just in Russia."



Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)
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Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)

Iraq produces more than 5 million barrels of oil per day (bpd), Oil Minister Basim Mohammed told state news agency INA on Saturday.

According to Reuters, Iraq is pushing for a higher OPEC production quota as the economic fallout from the Iran war and new investment by oil majors increase pressure on Baghdad to boost output, potentially putting it at odds with the producer group.

The conflict has hit Iraq particularly hard, forcing major export cuts and depriving the state of oil revenue, which accounted for 88% of government income last year.


IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

Central bankers around the world would need to consider any slowdown in AI-driven growth as they assess steps in their fight against inflation, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

Georgieva said concerns about dependence on the AI investment boom and high valuations were impacting markets around the world.

"Things are going up and down, and this is likely to continue," she told an audience at IMF headquarters in Washington, adding that the volatility would complicate the job of central banks at a time when risks to price stability had been growing.

A steep rout in technology stocks on Thursday rippled through markets on fears that ⁠the Democrats' victory ⁠in the US midterm elections would increase regulatory scrutiny of AI and slow the data center build-out, sending investors to the safety of bonds.

The political jitters are hitting an AI trade already on shaky footing due to worry about return on massive spending on AI-related infrastructure, with the meltdown spurring margin calls and spooking retail investors and hedge ⁠funds alike.

Georgieva said the AI investment boom was lifting growth in some countries, helping to offset a negative oil-supply shock triggered by the war in the Middle East, but it was also adding to inflationary pressures and financial stability concerns.

The IMF last month flagged significant growth and financial stability risks from a potential ending of the AI investment boom, among other factors, including a prolonged Middle East war. At the time, it warned that a steep drop in AI investment could lead to a sharp fall in asset prices, ultimately cutting global GDP ⁠by 1.1% ⁠by 2028, including a 1.8% drop in US output.

Georgieva did not repeat the downside forecast on Friday, but acknowledged the recent market volatility.

"Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation," she said.

Democrats are planning to unleash a flood of new legislation targeting artificial intelligence systems and data-center development when they take control of the US Congress in January, Reuters reported on Friday, citing congressional aides and advocates.

That would mark a sharp shift from the Republican-led Congress, where lawmakers largely focused on promoting AI development and declined to pass legislation restricting the technology.


World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
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World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.