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The world's largest burger brand announced in March that it will close 847 of its locations in Russia, including the historic Pushkin Square branch in central Moscow. As the crisis in Ukraine rages on, the fast-food beam
McDonald's Corp said on Monday that it will sell all of its stores in Russia after more than 30 years, making it one of the most significant global companies to leave since Russia's invasion of Ukraine. Following the transaction, the business expects to incur a non-cash charge of $1.2 billion to $1.4 billion. Last year, Russia and Ukraine accounted for around 9% of company revenue, or $2 billion. The firm announced plans to sell its whole network of restaurants in Russia to a local buyer.
The world's largest burger brand announced in March that it will close 847 of its locations in Russia, including the historic Pushkin Square branch in central Moscow. As the crisis in Ukraine rages on, the fast-food behemoth follows a slew of Western industries, ranging from automakers to oil producers, in fleeing Russia—after first halting operations in some cases.
McDonald's said in March that it will temporarily down its 847 outlets in Russia while continuing to pay its 62,000 employees. The Chicago-based corporation owns and runs 84 percent of its Russian restaurants, with the remainder handled by franchisees.
McDonald's announced on Monday that ongoing ownership of its Russian operations was no longer viable or "compatible with McDonald's principles." The burger behemoth is Russia's oldest American fast-food franchise. It launched its first restaurant in central Moscow in January 1990, following the collapse of the Berlin Wall, to hundreds of people in line.
Its departure exemplifies how dramatically ties with Russia and the West have deteriorated since President Vladimir Putin started his current offensive on Ukraine.
Since Russia invaded Ukraine in late February, Western corporations across industries have been under pressure to sell their operations there. The invasion provoked a wave of sanctions from Western nations, making it difficult to do business in the country. Since the battle began in late February, around 1,000 Western firms, including fellow fast-food stalwarts Domino's Pizza and Burger King, have reduced their operations in Russia.