Mcdonald’s to sell its Russian business

More than three decades after it became the first American fast food restaurant to open in the Soviet Union, Mcdonald’s said on Monday that it has started the process of selling its business in Russia, another symbol of the country’s increasing isolation over its war in Ukraine.

The company, which has 850 restaurants in Russia and employs 62,000 people, pointed to the humanitarian crisis caused by the war, saying holding on to its business in Russia “is no longer tenable, nor is it consistent with Mcdonald’s values”. The Chicago-based fast food giant said in early March that it was temporarily closing its stores in Russia but would continue to pay its employees. Without naming a prospective Russian buyer, Mcdonald’s said on Monday that it would seek one to hire its workers and pay them until the sale closes.

CEO Chris Kempczinski said the “dedication and loyalty to Mcdonald’s” of employees and hundreds of Russian suppliers made it a difficult decision to leave.

“However, we have a commitment to our global community and must remain steadfast in our values,” he said in a statement, “and our commitment to our values means that we can no longer keep the arches shining there.” As it tries to sell its restaurants, Mcdonald’s said it plans to start removing golden arches and other symbols and signs with its name. It said it will keep its trademarks in Russia.

Western companies have wrestled with extricating themselves from Russia, enduring the hit to their bottom lines from pausing or closing operations in the face of sanctions. Others have stayed in Russia at least partially, with some facing blowback.

French carmaker Renault said on Monday that it would sell its majority stake in Russian car company Avtovaz and a factory in Moscow to the state — the first major nationalisation of a foreign business since the war began.