McDonald's Selling Its Russian Business But Still Paying Employees

McDonald’s said Monday that it has started the process of selling its Russian business, which includes 850 restaurants that employ 62,000 people, making it the latest major Western corporation to exit Russia since it invaded Ukraine in February, David Koenig reported for the Associated Press (AP).

Photo Insert: The decision of McDonald's to leave comes as other US food and beverage giants like Coca-Cola, Pepsi, and Starbucks have paused or closed operations in Russia.

The fast food giant pointed to the humanitarian crisis caused by the war, saying holding on to its business in Russia “is no longer tenable, or consistent with McDonald’s values.”

The Chicago-based company announced in early March that it was temporarily closing its stores in Russia but would continue to pay employees. On Monday, it said it would seek to have a Russian buyer hire those workers and pay them until the sale closes. It did not identify a prospective buyer.

CEO Chris Kempczinski said the “dedication and loyalty to McDonald’s” of employees and hundreds of Russian suppliers made it a difficult decision to leave.

“However, we have a commitment to our global community and must remain steadfast in our values,” Kempczinski said in a statement, “and our commitment to our values means that we can no longer keep the arches shining there.”

As it tries to sell its restaurants, McDonald’s said it plans to remove golden arches and other symbols and signs with the company’s name but will keep its trademarks in Russia.

The first McDonald’s in Russia opened in Moscow more than three decades ago, shortly after the fall of the Berlin Wall. It was a symbol of the easing of Cold War tensions between the US and the Soviet Union.

McDonald’s was the first American fast food restaurant to open in the Soviet Union, which would collapse in 1991. Its decision to leave comes as other US food and beverage giants like Coca-Cola, Pepsi, and Starbucks have paused or closed operations in Russia in the face of Western sanctions.

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