McDonald’s Corp says it will be quitting Russia and selling its business there in response to the invasion of Ukraine, ending more than three decades in the country.
The fast-food giant joins a raft of Western companies, from vehicle manufacturers to oil producers, exiting Russia, some after having initially paused operations, as the war in Ukraine continues, according to the Wall Street Journal.
McDonald’s in March temporarily closed its 847 restaurants in Russia, while continuing to pay the 62,000 people it employs there. The Chicago-based company owns and operates 84% of its restaurants in Russia, with the rest run by franchisees.
On Monday, McDonald’s said that continued ownership of its business in Russia was no longer tenable nor “consistent with McDonald’s values.”
‘We have a commitment to our global community and must remain steadfast in our values,’ Chief Executive Chris Kempczinski said.
The company said it would pursue the sale of its entire portfolio of restaurants in Russia to a local buyer. It expected to record an accounting charge of between $1.2 billion and $1.4 billion in connection with the move, and recognise a significant foreign currency translation loss.
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