McDonald’s has said it will permanently leave Russia after more than 30 years and has started to sell its restaurants.
The move comes after it temporarily closed its 850 outlets in March.
The fast food giant said it made the decision because of the “humanitarian crisis” and “unpredictable operating environment” caused by the Ukraine war.
The opening of McDonald’s first restaurant in Moscow in 1990 came to symbolise a thaw in Cold War tensions.
A year later, the Soviet Union collapsed and Russia opened up its economy to companies from the West. More than three decades later, however, it is one of a growing number of corporations pulling out.
“This is a complicated issue that’s without precedent and with profound consequences,” said McDonald’s chief executive Chris Kempczinski in a message to staff and suppliers.
McDonald’s said it will sell all its sites to a local buyer and will begin the process of “de-arching” the restaurants which involves removing its name, branding and menu. It will retain its trademarks in Russia.
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 said it will write off a charge of up to $1.4bn (£1.1bn) to cover the exit from its investment.
SOURCE: BBC
