After 3 Decades, McDonald’s Announces Total Exit from Russia | Economy

McDonald’s announced this Monday (16) that it will withdraw completely from Russia. The US fast food chain said it has already started the process for the sale of its business on Russian territory.

In March, after the start of the war in Ukraine, McDonald’s had already announced the closure of its 850 restaurants in Russia and the suspension of all its operations in the country, following in the footsteps of several multinationals that decided to distance themselves from Moscow after the invasion. Russian from Ukraine.

  • Companies that left Russia after the start of the war

The fast food giant pointed to the humanitarian crisis caused by the war, saying that keeping its business in Russia “is no longer sustainable, nor is it consistent with McDonald’s values.”

The fast food chain employed 62,000 employees in Russia, a country where it had been present for over 30 years. The first McDonald’s in the country opened shortly after the fall of the Berlin Wall and was a powerful symbol of the easing of cold war tensions between the United States and the Soviet Union.

McDonald’s store in Saint Petersburg, in March 2022 image — Photo: Anton Vaganov/Reuters

The company expects a financial impact of between $1.2 billion and $1.4 billion when leaving Russia.

Russia, where McDonald’s directly manages more than 80% of its restaurants that bear its name, represents 9% of the company’s total revenue and 3% of its operating profit.

CEO Chris Kempczinski said the “dedication and loyalty to McDonald’s” from employees and hundreds of Russian suppliers made the decision to leave difficult. “However, we have a commitment to our global community and must remain steadfast in our values,” he said.

The network said it continues to pay full salaries to its employees in the country. The company said it was looking for a Russian buyer to hire these workers, but gave no information on potential buyers.

Multinationals decide to stop business in Russia after Ukraine invasion

Multinationals decide to stop business in Russia after Ukraine invasion

About Abhishek Pratap

Food maven. Unapologetic travel fanatic. MCU's fan. Infuriatingly humble creator. Award-winning pop culture ninja.

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