McDonald’s has made the decision to permanently quit Russia after arriving in the country over 30 years ago.
The fast-food chain’s president, Chris Kempczinski, released a press statement on May 16, revealing that recent events involving Ukraine mean that it no longer aligns with the company’s ‘values’.
It read: “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.
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“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.”
Due to the exit, McDonald’s is expected to record a non-cash charge of about $1.2billion.
Apparently, it will also continue to ensure that its 62,000 employees in Russia are paid until the sale is completed.
As the chain waits to be sold, it plans to remove all symbols from the country’s restaurants, including the iconic golden arches.
However, the trademark will remain in Russia.
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Back in March, McDonald’s made the decision to temporarily close its 850 sites within the country.
The first of its restaurants in Russia opened shortly after the fall of the Berlin Wall. At the time, it was considered to ease tensions after the Cold War between the US and the Soviet Union, which collapsed in 1991.
McDonald’s move comes amid other American companies – including Pepsi and Starbucks – pausing or closing stores in Russia.
Corporations such as H&M and IKEA came to a halt within the country when Russia’s President, Vladimir Putin, ordered his troops into pro-western areas of Ukraine.
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