McDonald’s to leave Russia after 30 years

American fast-food giant McDonald’s is set to leave Russia out of its business transactions.

This is happening after more than 30 years of operations in the country.

Alongside France’s Renault, McDonald’s announced its exit on Monday, May 16.

Since President Vladimir Putin ordered troops into Ukraine on February 24, Renault has had difficulty keeping its operations going due to a lack of components following the imposition of Western sanctions.

McDonald’s folded up all 850 of its Russian restaurants in March.

On Monday, chief executive Chris Kempczinski made a statement announcing readiness to sell the company.

He said, “its entire portfolio of McDonald’s restaurants in Russia to a local buyer.

“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.

“However, we have a commitment to our global community and must remain steadfast in our values.”

Renault controlled 68 percent of AvtoVAZ, which is the largest carmaker in Russia with the country’s top brand Lada.

However, it was pressured to exit the country since the start of Russia’s military intervention in Ukraine in late February.

Renault has pumped billions of euros into the Soviet-era factory since strategic partnership agreement was signed between the two automakers in 2008.

Although, no financial details were provided on Monday, Russian Industry and Trade Minister Denis Manturov had said in April that Renault planned to sell its Russian assets for “one symbolic ruble”.

He said, “Agreements were signed on the transfer of Russian assets of the Renault Group to the Russian Federation and the government of Moscow”.

The agreement states that Renault will retain a six-year buy-back option of the stake in AvtoVAZ, including Renault’s Moscow plant, which makes Renault and Nissan models.

Renault chief executive Luca de Meo stated that, “Today, we have taken a difficult but necessary decision; and we are making a responsible choice towards our 45,000 employees in Russia, while preserving the Group’s performance and our ability to return to the country in the future, in a different context”.

According to Topnaija sources, Renault is yet to confirm the sales of its Russian assets.