McDonald’s to permanently quit Russia over the Ukraine war

By writing off all of its assets in Russia, the company will instantly lose £1.2 billion.

McDonald’s has revealed this afternoon that it will permanently quit Russia over the war in Ukraine.

The company has said it will be selling off its locations in the country and ‘de-Arching’ the new owners, citing the ongoing ‘humanitarian crisis’ caused by the conflict.

McDonald’s has said that its position in Russia is ‘no longer tenable, nor is it consistent with McDonald’s values’, reports The Manc.

Whilst many companies have announced temporary sanctions on Russia. this move by McDonald’s makes it one of just a handful of global brands to permanently pull out of the country in protest of the war.

When bosses initially shut down operations on 8 March following the initial invasion, the measures were only intended to be temporary.

Image: Flickr

In spite of this, it has emerged that McDonald’s still plans to look after its 62,000 Russian staff and has promised that they will continue to have jobs with the stores’ new owners as part of any future deal.

The company has also pledged to keep paying its Russian staff until new agreements are signed.

CEO Chris Kempzcinski said that the Russian staff’s dedication and loyalty to McDonald’s ‘make today’s announcement extremely difficult’, adding that he was ‘exceptionally proud’ of them.

‘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.’

By writing off all of its assets in Russia, the company will instantly lose £1.2 billion, it said in a statement, adding that it expects ‘significant losses’ as it also has to sell all of its assets in roubles.

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In a private document obtained by The New York Times, Mr Kempzcinski admitted the move would have ‘profound consequences’ on employees, franchises and suppliers.

He said: “Some might argue that providing access to food and continuing to employ tens of thousands of ordinary citizens is surely the right thing to do.

“But 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.”

He reportedly added: “In the history of McDonald’s, it was one of our proudest and most exciting milestones.

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“After nearly half a century of Cold War animosity, the image of the Golden Arches shining above Pushkin Square heralded for many, on both sides of the Iron Curtain, the beginning of a new era.”

Feature image – Wikimedia Commons

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