The exodus of western brands in response to Russia’s invasion of Ukraine contributes to an existing economic shift
The Golden Arches Theory of Conflict Prevention once proposed that no two nations with McDonald’s franchises would go to war; people in those kinds of economies would rather queue for burgers. The thesis was not only crass, but soon disproven. Yet it nodded to a broader truth: that economic ties were drawing countries closer together, creating a global interdependence which would not quickly be undone.
Times have changed. On Tuesday, the American fast-food giant suspended its operations in Russia. It is part of a dramatic exodus by international brands – from Uniqlo, Netflix and Chanel to Apple, PwC and American Express – due to Vladimir Putin’s invasion of Ukraine, the western sanctions imposed in response and the public outcry. Shell and BP are selling their Russian assets. Britain and the US are banning Russian oil, while the EU is slowly phasing out gas imports, on which it is heavily dependent. On Friday, the US announced that, with allies, it was revoking Russia’s “most favoured nation” status.
