After temporarily closing more than 800 restaurants following the invasion of Ukraine last March, McDonald’s decided to leave Russia entirely. Through a press release, the American fast food giant reported Monday that the sale process has begun.
McDonald’s market in Russia includes 850 restaurants that it will begin to “disarm,” stripping them of their signs, menus and trademarks. This makes the popular chain the last major Western corporation to leave Russia since it invaded Ukraine on February 24.
The Chicago-based company pointed to the humanitarian crisis caused by the war, saying keeping its business in Russia “is no longer sustainable or consistent with McDonald’s values.” He also described exiting the Russian market as a business decision, citing the “unpredictable operating environment” in Russia due to sanctions imposed by the international community.
The decision will directly affect some 62,000 employees, along with hundreds of suppliers and distributors. While searching for a buyer, McDonald’s says it will continue to pay all of its employees as it has done since it paused operations at its restaurants on March 8.
We have a long history of establishing deep local roots wherever the Arches shine. We are exceptionally proud of the 62,000 employees who work in our restaurants, along with the hundreds of Russian suppliers who support our business and our local franchisees. Your dedication and loyalty to McDonald’s make today’s announcement extremely difficult. However, we have a commitment to our global community and must remain firm in our values. And our commitment to our values means we can no longer keep the Arches shining there.
– Chris Kempczinski, President and CEO of McDonald’s
The departure of the fast-food giant ends an era that began in January 1990, when McDonald’s was the first American restaurant to open its doors in Russia, shortly after the fall of the Berlin Wall.
Its opening in Pushkin Square, in the center of Moscow, was an unprecedented success, serving more than 30,000 customers who were willing to wait in long lines. Back then, his arrival was interpreted as a sign of relief and progress at a time when Russia was still part of the communist Soviet Union and the Cold War with the United States prevailed.