McDonald’s announced on Monday that it is closing down business in Russia after operating for more than 30 years.
The company cited the ongoing war in Ukraine as one of its reasons for leaving, explaining that its “continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald’s values.”
“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,” Chris Kempczinski, McDonald’s president and chief executive officer, said in a press release.
“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 said that it is prioritizing the safety and financial security of its employees given how unpredictable the operating environment in Russia has been.
Last March, the company previously announced that it was temporarily closing restaurants in the country, as well as pausing operations there. Other Western brands such as Starbucks and PepsiCo followed through and suspended operations.
McDonald’s restaurants in Ukraine are also closed but said that they continue to pay full salaries for their employees there.
The company said in the news release that it will write off up to $1.4 billion from the withdrawal and “recognize foreign currency translation losses.”
Some of the locals were not surprised by the company’s decision to leave Russia, with blogger Natalia Konstantinova telling reporters that “it was expected.”
“War is war, business is business,” she said via Telegram. “From a business point of view I understand why they do it. None of the businessmen needed this war… they also got trapped.”
McDonald’s first opened its doors in Russia back in January 1990, shortly after the collapse of the Soviet Union. The company served more than 30,000 customers on opening day and became a symbol of the gradual opening of the Soviet Union to the West at the time.
Russia is reportedly developing something of a replacement for McDonald’s with similar branding.
