McDonald’s has finally discloses its intention to sell Russian business after more than 30 years of its existence in the country.
The company stated that the war in Ukraine and the unimaginable operating environment in Russia is the main reason for the decision.
“Continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald’s values.”
Chris Kempczinski, McDonald’s president and chief executive officer, said, “We’re really proud of the 62,000 employees who work in our restaurants, along with the Russian suppliers who support our business, and our local businesses. Their dedication, efforts and loyalty to McDonald’s make today’s announcement extremely difficult.
“However, we have a commitment to our global community and must remain steadfast in our values. And our commitment to our values means that we can no longer keep the Arches shining there.”
The company mentioned that it was a priority to “ensure the employees of McDonald’s Russia continue to be paid until the close of any transaction and that employees have future employment with any potential buyer.”
McDonald’s announced on March 8 that it had temporarily shut down restaurants in Russia and paused operations there.
Other Western brands like Starbucks and PepsiCo announced at the time that they would also suspend their operations.
McDonald’s restaurants in Ukraine are also closed although the company said it continues to pay full salaries for its employees there.
McDonald’s said in the news release that it will write off up to $1.4 billion from the withdrawal and “recognize foreign currency translation losses.”