McDonald's Russian restaurants to reopen under new brand after sale
McDonald's has found a buyer for its Russian business after the war in Ukraine pushed it to exit the market.
Alex Govor, who operates 25 McDonald's restaurants in Siberia, will acquire the chain's entire Russian portfolio and run it under a new brand.
The sale price was not disclosed but McDonald's previously said it expects to take a $1.2-$1.4b hit on its investment.
The fast food chain opened its first Russian restaurant in Moscow in 1990, which was seen as a symbol of a thaw in Cold War tensions.
Gover has agreed to keep on the company's 62,000 Russian employees for at least two years on equal terms and will pay the salaries of corporate staff in 45 regions until the sale closes.
He will also pay existing liabilities to suppliers, landlords and utilities companies.
McDonald's chief executive Chris Kempczinski said the sale was "extremely difficult" but the company's values meant it could "no longer keep the Arches shining [in Russia]".
The agreement remains subject to regulatory approval and is expected to close within the next few weeks.
Hotel groups including Hyatt, Accor and Radisson have announced they will suspend future investments, development activity and hotel openings in Russia following the invasion of Ukraine.
Foodservice giant Compass Group and Jamie Oliver Group have both withdrawn their operations in Russia in response to the conflict.
Image: FotograFFF / Shutterstock
