McCain Foods suspends shipments to Russia, ends production facility project

A McCain Foods plant is seen in New Brunswick in this file photo.

TORONTO -

McCain Foods is ending a project to build a production facility in Russia and suspending shipments of its products to the country because of the country's invasion of Ukraine.

The Canadian company says it stopped construction at the Russian production facility in the Tula Oblast region on Feb. 24 and has now made the decision to discontinue the project entirely.

"The Russian invasion of Ukraine has been deeply concerning to all of us at McCain Foods," Charlie Angelakos, vice-president of global external affairs and sustainability at McCain Foods, said in a statement.

"Our thoughts continue to be with those affected by this crisis and we have done everything in our power to put the health and safety of our employees at the centre of our response."

The decision by the french fry maker comes as countries around the world stop work in Russia or with Russian companies because of the invasion and global economic sanctions.

The announcement by McCain came as WSP Global Inc. says it is also quitting its projects in Russia and will stop seeking out work in that country or Belarus.

WSP, which says it has no employees in Russia, Ukraine or Belarus, estimated its economic exposure related to the assignments to be under $1 million.

The owner of Burger King said Thursday it has suspended all corporate support to the 800 franchised locations in Russia, including operations, marketing and supply chain. It is also refusing to approve investments and expansion in the country.

Restaurant Brands International previously announced it was redirecting any profits from Russia to humanitarian aid for Ukrainian refugees.

Competitors such as McDonald's closed their restaurants in the country where it has 62,000 employees. The fast food giant said closing its nearly 850 restaurants, most of which it owns, would cost it about US$50 million per month.

Restaurant Brands, which also owns Tim Hortons, said it donated US$1 million to the United Nations refugee agency, the UNHCR. Franchisees in Europe are also partnering with local NGOs to distribute US$2 million of free Whopper meal vouchers to Ukrainian refugees arriving in those countries

This report by The Canadian Press was first published March 10, 2022.