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Monday, May 16, 2022

Ukraine War: McDonald’s leaves Russia after 30 years

The company said it was looking for a buyer in Russia, would undergo a “de-arching,” and continue to pay its 62,000 employees in Russia until a deal finalises.

• May 16, 2022
McDonald’s in Russia
McDonald’s in Russia [Photo Credit: The Guardian]

American multinational fast food corporation, McDonald’s, will sell its business in Russia after more than three decades due to the ongoing war in Ukraine.

“The humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald’s to conclude that continued ownership of the business in Russia is no longer tenable,” the Chicago-based company said.

“This is not consistent with McDonald’s values,” a company statement said. It added that it would look to find a buyer in Russia.

The outlets will then undergo a “de-arching,” meaning the McDonald’s name, menu and branding – including the iconic golden arches in the shape of an “m”, can no longer be used.

McDonald’s said it would make sure that its 62,000 employees in Russia continue to be paid until a deal finalises its priority.

The company will book special costs of $1.2 to $1.4 billion for the exit, including write-downs and foreign currency losses.

The complete withdrawal follows McDonald’s announcement on March 8 that it had temporarily closed restaurants and paused operations in Russia. 

(dpa/NAN)

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