Mcdonald’s to sell fast-food business in Russia because of war in Ukraine

MCDONALD’S said it has started the process of selling its Russian business, which includes 850 restaurants that employ 62,000 people, making it the latest major Western corporation to exit Russia since it invaded Ukraine in February.

The fast-food giant 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 company announced in early-march it was temporarily closing its stores in Russia but would continue to pay employees. Yesterday, it said it would seek to have a Russian buyer hire those workers and pay them until the sale closes. It did not identify a prospective buyer.

Chief executive 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 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 the company’s name. It said it will keep its trademarks in Russia.

The first Mcdonald’s in Russia opened in Moscow more than three decades ago, after the fall of the

Berlin Wall. It was a powerful symbol of the easing of Cold War tensions between the US and Soviet Union.

Mcdonald’s was the first American fast-food restaurant to open in the Soviet Union, which would collapse in 1991.

Mcdonald’s decision to leave comes as other US giants, including Coca-cola, Pepsi and Starbucks, have paused or closed operations in Russia.

Mcdonald’s said it expected to record a charge against earnings of between $1.2bn (£980 million) and $1.4bn (£1.1bn) over leaving Russia.

Its restaurants in Ukraine are closed, but the company said it was still paying full salaries for its employees there.