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American fast-food company McDonald’s has decided to exit the Russian market for good citing the ‘humanitarian crisis’ caused by the Ukraine war.
The move follows McDonald’s decision to temporarily close its restaurants in the country, which was made in March.
The company, which has been operating in the country for more than three decades, said it has made the decision in response to the ‘humanitarian crisis’ and ‘unpredictable operating environment’ caused by the war in Ukraine.
The company plans to sell its entire business in Russia to a local buyer. It will also initiate the ‘de-Arching’ process, which means that the McDonald’s name, logo, branding and menu can no longer be used in the country.
However, McDonald’s will continue to retain its trademarks in Russia.
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McDonald’s president and CEO Chris Kempczinski said: “We have a long history of establishing deep, local roots wherever the Arches shine.
“We’re exceptionally proud of the 62,000 employees who work in our restaurants, along with the hundreds of Russian suppliers who support our business, and our local franchisees.
“Their dedication 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.”
McDonald’s has decided to pay wages until the deal is finalised and seeks to include future employment for Russian employees as part of the terms of sale.
To cover the exit from its investment, McDonald’s expects to record a charge of nearly $1.2bn to $1.4bn.
In Ukraine, the fast-food restaurant company will remain closed, but all its employees will continue to receive full salaries.