Since Russia’s invasion of Ukraine in February, several Western companies have left the country.
Renault, meanwhile, declared on Monday that it has handed over its Russian assets to the Russian government in Moscow. Marking the first big nationalization of the economic disentanglement.
McDonald’s closed all of its 850 restaurants across the country in March, claiming to employ 62,000 workers.
“After more than 30 years of operations in the nation. McDonald’s Corporation announced it will quit the Russian market. And has launched a process to sell its Russian business”. It said in a statement on Monday.
McDonald’s will leave Russia after 30 years
In a statement it said it was “pursuing the sale of its entire portfolio of McDonald’s restaurants in Russia to a local buyer” adding that would entail existing outlets there “no longer using the McDonald’s name, logo, branding, and menu, though the Company will continue to retain its trademarks in Russia”.
The restaurants would no longer be permitted to use the McDonald’s name, logo, branding, or menu after the transaction, according to the corporation.
Russia accounts for 9% of the company’s revenue and 3% of its operational profit, with McDonald’s directly managing more than 80% of the stores bearing its brand.
“We’re extremely pleased of the 62,000 workers that work in our restaurants. As well as the hundreds of Russian suppliers who support our business and our local franchisees”. Said CEO Chris Kempczinski in a statement. Their commitment to McDonald’s makes today’s announcement particularly painful.
“However, we have a responsibility to our global community and must uphold our principles. We can no longer keep the Arches sparkling because of our dedication to our beliefs.”
On February 24, Russian President Vladimir Putin sent soldiers into pro-Western Ukraine, prompting unprecedented Western sanctions and a mass departure of multinational firms such as H&M, Starbucks, and Ikea.
The authorities stated they were prepared to nationalize foreign assets. As they had done with Renault. And some officials told Russians that their favorite brands would be replaced with indigenous ones.
Moscow officials have attempted to downplay the severity of Western sanctions. Stressing that Russia will adapt and take precautions to prevent the flight of foreign currency and capital.