McDonald’s has announced that it will leave Russia permanently after more than 30 years and has begun selling its restaurants.
The company’s 850 stores were temporarily closed in March.
The fast-food corporation stated that it made the decision due to the “humanitarian crisis” and “unpredictable operating environment” caused by the Ukraine conflict.
In 1990, the opening of McDonald’s first restaurant in Moscow symbolised a thaw in Cold War tensions.
The Soviet Union collapsed a year later, and Russia opened its economy to Western companies. However, more than three decades later, it is one of a growing number of corporations withdrawing.
“This is a complicated issue that’s without precedent and with profound consequences,” said McDonald’s chief executive Chris Kempczinski in a message to staff and suppliers.
“Some might argue that providing access to food and continuing to employ tens of thousands of ordinary citizens, is surely the right thing to do,” he added.
“But it is impossible to ignore the humanitarian crisis caused by the war in Ukraine. And it is impossible to imagine the Golden Arches representing the same hope and promise that led us to enter the Russian market 32 years ago.”
McDonald’s announced that it will sell all of its locations to a local buyer and will begin the process of “de-arching” the restaurants, which entails removing the company’s name, branding, and menu. In Russia, it will keep its trademarks.
The chain stated that one of its top priorities was to ensure that its 62,000 employees in Russia were paid until the sale was completed and that they had “future employment with any potential buyer.”
McDonald’s said it will write off up to $1.4 billion (£1.1 billion) in charges to cover the exit from its investment.