Sharjah24 – AFP: American fast-food giant McDonald's said Monday it will exit Russia in the wake of the Ukraine invasion, ending a more than three-decade run begun in the hopeful period near the end of the Cold War.
The restaurant chain, which launched in Moscow in January 1990 to great fanfare almost two years before the Soviet Union was dissolved, characterized the withdrawal as difficult but necessary.
"The humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald's to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald's values," the company said in a statement.
The chain is looking to sell "its entire portfolio of McDonald's restaurants in Russia to a local buyer."
The burger giant is one of numerous foreign firms that have pulled out of the country or suspended operations following Moscow's invasion of Ukraine in late February.
In March, citing "unspeakable suffering to innocent people," McDonald's closed all of its 850 restaurants in the country, where it says it employs 62,000 workers.
But on Monday the "Big Mac" maker went a step further, saying the company "is pursuing the sale of its entire portfolio of McDonald's restaurants in Russia to a local buyer."
After the sale, the restaurants would no longer be able to use the McDonald's name, logo, branding or menu, though the company will retain its trademark in the country, it said.
Russia currently accounts for nine percent of the company's revenue and three percent of its operating profit.
McDonald's expects a one-time charge of $1.2 billion to $1.4 billion to write off the investment.
For an optimal experience, please
