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The
world's largest fast food chain had in March decided to close
its 847 restaurants in Russia, taking a hit of $50 million per
month. It now expects to record a non-cash charge of about $1.2
billion to $1.4 billion following the sale.
The decision to sell its Russia assets, including the iconic
Pushkin Square location in central Moscow, marks a major retreat
by an iconic Western brand.
Once a symbol of flourishing American capitalism in the dying
embers of the Soviet Union, the store was the first to be opened
in the country in 1990. More than 5,000 people had attended the
opening.
McDonald's said it was looking to sell all its restaurants in
Russia to a local buyer, but will continue to retain the
trademark.
"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," McDonald's said.
A slew of other Western companies have agreed to sell their
Russian assets or hand them over to local managers as they
scramble to comply with sanctions over the Ukraine conflict and
deal with threats from the Kremlin that foreign-owned assets may
be seized.
The company said it would ensure that its 62,000 employees in
Russia continue to be paid until the close of any transaction
and that they have future jobs with any potential buyer.
(Reporting by Uday Sampath in Bengaluru; Editing by Sriraj
Kalluvila and Arun Koyyur)
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