McDonald’s has announced it will quit Russia after 30 years.
The fast food giant said it made the decision because of the „humanitarian crisis” and „unpredictable operating environment” caused by the Ukraine war.
There was euphoria when the chain opened in Moscow in 1990 as the Soviet Union was opening its economy to Western brands, and its departure carries similar symbolic weight.
The opening was deeply symbolic– an American cultural icon setting up shop as the Soviet Union was in terminal decline.
Its departure, the latest global brand to pull out as Russia’s war in Ukraine makes it untenable for companies to do business there, signals the irretrievable breakdown in ‘normal’ relations between the West and Russia.
The company said owning a business in Russia was „no longer tenable” or consistent with its values.
The move comes after the fast food giant temporarily closed its 850 outlets there in March.
The company said it was now pursuing the sale of all its restaurants in Russia to a local buyer and intended to start the process of „de-arching” the sites so they no longer use the McDonald’s name, branding and menu.
The chain said its priorities included seeking to ensure its 62,000 employees in Russia continued to be paid until any sale was completed and that they had „future employment with any potential buyer.”
McDonald’s president and chief executive, Chris Kempczinski, said the announcement was „extremely difficult” but it wanted to stick to its values, the BBC reported.
„Our commitment to our values means that we can no longer keep the Arches shining there.”
Last year Russia and Ukraine accounted for about 9% of McDonald’s global sales.
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