American fast-food giant McDonald's said on Monday, 16 May, that it will exit Russia's market and sell its business in the country amid the war in Ukraine.
"After more than 30 years of operations in the country, McDonald's Corporation announced it will exit the Russian market and has initiated a process to sell its Russian business," a statement by McDonald's read, as per AFP.
The statement added that 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, nor is it consistent with the company's values.
In March this year, McDonald's had shut all its 850 outlets in Russia, which employed around 62,000 people.
Plan to Sell to Local Buyer
The statement also said that the fast-food company was planning to sell its entire portfolio of restaurants in the country to a local buyer, adding that after the sale, the restaurant would not be permitted to use the name, logo, menu, or branding of McDonald's.
Meanwhile, McDonald's CEO Chris Kempczinski issued a statement, saying, "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," AFP reported.
He added that the dedication of employees made Monday's announcement "extremely difficult".
Russia accounts for around 9 percent of McDonald's total revenue and 3 percent of the company's operating profit.
Several Western brands have exited the Russian market since the latter's invasion of Ukraine began. Earlier on Monday, French automobile manufacturer Renault said that it had handed over its assets in Moscow to the Russian government.
(With inputs from AFP.)
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