After 30 years McDonald’s decided to leave Russia for good. How will this impact Russia…. well, that’s detailed on video (but who the heck cares?).
It is not surprising that American food chain restaurant made this move in Russia’s current situation and political choices in the last few months.
They closed 850 restaurants for good and decided to sell their restaurants to the local buyer removing their brand, name, and menu.
McDonald’s opened their first store in Moscow in 1990 after the Cold War tensions, symbolizing the will for cooperation between the two countries, per report.
“It is impossible to ignore the humanitarian crisis caused by the war in Ukraine. And it is impossible to imagine the Golden Arches representing the same hope and promise that led us to enter the Russian market 32 years ago,” said McDonald’s chief executive Chris Kempczinski.
After facing harsh criticism about their slow reaction to halt their business in this country, they stated that they wanted to wait to see if the situation would improve, but since it got worse, they finally made their final move.
They are ensuring their 62 000 employees as well as their suppliers that they will be paid until the final sale is completed and that they will have “future employment with any potential buyer.”
McDonald’s stated that they are prepared to write off a charge of up to $1.4bn (£1.1bn) for exiting its investment.
The famous American food chain made this step after Renault announced it was selling its business in the country. They stated that 68% of the shares are being sold to a Russian science institute, and their investments in Renault Russia are going to the city of Moscow.
This restaurant is not the only one that is leaving Russia. Some of them are leaving for good, and some are waiting for the change in the current situation while continuing to pay full salaries to their employees.
Big brands such as Coca-Cola, Starbucks, Apple, and Levi’s, have left Russia, and this is only the beginning.
On the other hand, Marks and Spencer and Burger King are informing wide masses about their difficulties in the closing process due to legal difficulties.
A long history of tensions between the West and Russia finally reached the breaking point when Russia invaded Ukraine in February and got deeply condemned for its actions.
Russia is facing punches from the West who aspires to distance itself from the aggressive politics and violation of human rights. They will continue to direct their affairs in accordance with the political views of their countries.