McDonald’s sells all 850 Russian restaurants

McDonald’s is selling all of its restaurants in Russia 30 years after the burger chain became a powerful symbol of easing Cold War tensions between the United States and Soviet Union.

The company shuttered hundreds of locations in March after Russia invaded Ukraine, which has cost McDonald’s about $55 million per month. On Monday, McDonald’s announced it would sell those stores and leave Russia.

Alexander Govor, a McDonald’s licensee who operates 25 restaurants in Siberia, has agreed to buy McDonald’s 850 Russian restaurants and operate them under a new name, the Chicago-based burger giant said Thursday.

McDonald’s did not disclose the terms of the sale. Last year, McDonald’s Russian operations contributed 9% of the company’s total annual sales, or around $2 billion.

McDonald’s was among the first Western consumer brands to enter Russia in 1990. Its gleaming store near Pushkin Square in Moscow, which opened shortly after the fall of the Berlin Wall, signaled a new era of optimism in the wake of the Cold War.

It’s the first time the company has exited a major market. It plans to start removing golden arches and other symbols and signs with the company’s name. McDonald’s said it will also will maintain its trademarks in Russia and enforce them if necessary.

The sale announced Thursday is subject to regulatory approval, but is expected to close within a few weeks, McDonald’s said.

Govor, a licensee since 2015, has also agreed to retain McDonald’s 62,000 Russian employees for at least two years on equivalent terms. Govor also agreed to pay the salaries of McDonald’s corporate employees until the sale closes.

Govor is also half-owner of Neftekhimservis, a construction investor that owns an oil refinery in Siberia.

It’s unclear if other U.S. chains will follow McDonald’s lead and leave Russia. McDonald’s owned 84% of its Russian stores, which gave it more control over operations than many of its rivals whose stores are owned by franchisees.