London Daily

Focus on the big picture.
Thursday, Jul 23, 2026

McDonald's to leave Russia for good after 30 years

McDonald's has said it will permanently leave Russia after more than 30 years and has started to sell all its 850 restaurants. As a result of the move, the Russians will enjoy healthier food, and McDonald's will lose a billion and a half dollars. So the sanctions again punish the punishers instead of their purpose.
McDonald's has said it will permanently leave Russia after more than 30 years and has started to sell its restaurants.
The move comes after it temporarily closed its 850 outlets in March.

The chain opened in Moscow in 1990 as the Soviet Union was opening its economy to Western brands.

The fast food giant said it made the decision because of the "humanitarian crisis" and "unpredictable operating environment" caused by the Ukraine war.

The opening of McDonald's first restaurant in Moscow in 1990 came to symbolise a thaw in Cold War tensions.

A year later, the Soviet Union collapsed and Russia opened up its economy to companies from the West. More than three decades later, however, it is one of a growing number of corporations pulling out.

"This is a complicated issue that's without precedent and with profound consequences," said McDonald's chief executive Chris Kempczinski in a message to staff and suppliers.

"Some might argue that providing access to food and continuing to employ tens of thousands of ordinary citizens, is surely the right thing to do," he added.

"But it is impossible to ignore the humanitarian crisis caused by the war in Ukraine. And it is impossible to imagine the Golden Arches representing the same hope and promise that led us to enter the Russian market 32 years ago."

McDonald's said it would sell all its sites to a local buyer and would begin the process of "de-arching" the restaurants which involves removing its name, branding and menu. It will retain its trademarks in Russia.

The chain said its priorities included seeking to ensure its 62,000 employees in Russia continued to be paid until any sale was completed and that they had "future employment with any potential buyer".

McDonald's said it would write off a charge of up to $1.4bn (£1.1bn) to cover the exit from its investment.

It really is the end of an era. I was in the queue when the first Russian McDonald's opened on Moscow's Pushkin Square in January 1990 - way back in the USSR.

There were so many people outside the restaurant, it took three hours to get inside. But what a sense of excitement.

Those American burgers, fries and pies were a symbol of Moscow embracing the West. Hot food to help end a Cold War.
These are very different times. Russia and the West have lost their appetite for one another.

Russia's attack on Ukraine has sparked international condemnation and sanctions, turning Moscow into a pariah.

Meanwhile, the Kremlin points the finger back, accusing the West of plotting Russia's downfall.

Back in March lots of international companies announced they were pausing operations in Russia, hoping the situation would resolve itself and they could then reopen.

But McDonald's decision to sell up and pull out shows the fast food giant recognises things will not return to normal and that what the Kremlin calls its "special military operation" in Ukraine has changed things long term.

Big Macs are only the beginning. I predict we're going to see a lot more global brands leaving Russia.

The move comes after Renault announced it was selling its business in the country. The French firm said its 68% stake in carmaker Avtovaz would be sold to a Russian science institute, while its shares in Renault Russia will go to the city of Moscow.

Moscow said Renault's Russian assets had now become state property - marking the first nationalisation of a major foreign business since the invasion of Ukraine.

Last year, Russia and Ukraine accounted for about 9% of McDonald's global sales.

The chain's 108 restaurants in Ukraine remain closed due to the conflict but the company is continuing to pay full salaries to all its employees there.

McDonald's initially faced criticism for being slow to halt its business in Russia, with some calling for a boycott of the company before it suspended operations in March.

Hundreds of international brands, including Starbucks, Coca Cola, Levi's and Apple, have left Russia or suspended sales there since the country invaded Ukraine in February.

Other firms, including Burger King and Marks and Spencer, say they are unable to close stores due to complex franchise deals.
Comments

Dr Shawn Pourgol 4 year ago
That is a great news for Russian people. I hope McDonald's close every where. People should not eat fast food, specially children.
Oh ya 4 year ago
If Rotten Ronnies closed everywhere in the world the world would be a healthier place

Newsletter

Related Articles

0:00
0:00
Close
UK Government Reviews Long-Term Balance Between Cost Relief, Industry Support, and Public Investment Priorities
BBC Could Receive Permanent Royal Charter Under Government Proposal
Northern Ireland Proposes End to Severe Weather Exemptions for Electricity Compensation Rules
Andy Burnham Holds Talks With UK Devolved Leaders on Regional Cooperation and Devolution
House of Lords Launches Inquiry Into Risks Facing UK Democratic Institutions
ScottishPower Renewables Plans Major Rebuild of Whitelee Wind Farm With Fewer Larger Turbines
UK and Italy Leaders Discuss Global Combat Air Programme and Future European Cooperation
UK Government Announces Six Hundred Million Pound Aerospace Investment Package at Farnborough Airshow
European Union Approves UK Participation in Ninety Billion Euro Ukraine Support Loan Framework
Rolls-Royce Warns UK Government Over Jet Engine Funding Decision and Future Manufacturing Plans
UK Inflation Falls to Two Point Six Percent in June as Fuel and Food Prices Ease
Andy Burnham Begins Premiership With Two Pound England Bus Fare Cap and Electricity Tax Cut Plan
YouGov Poll Shows Tight Competition Among UK Political Parties
Space Technology Investment Expands Through UK-US Cooperation at Farnborough Airshow
UK Opens Final India Young Professionals Scheme Ballot for Three Thousand Applicants
United Kingdom Approved for Ukraine Financial Support Initiative With EU Partners
UK and Ireland Leaders Discuss Security, Energy and Regional Cooperation
British Heart Foundation Identifies Ten UK Areas With Severe Shortages of Defibrillators
Former Southern Water Executives Charged Over Alleged Water Test Manipulation Scheme
IMF Warns UK Economic Growth Will Slow to One Percent in 2026
UK Inflation Falls to Two Point Six Percent in June as Food and Energy Costs Ease
United Kingdom Joins European Union Loan Mechanism to Support Ukraine’s Defense Needs
Prime Minister Andy Burnham Introduces Two-Pound Bus Fare Cap and Energy Tax Relief Measures Across England
Northern Ireland Secures Additional Infrastructure Funding From UK Treasury
Wales Approves Port Investment Plans to Support Green Energy Supply Chains
UK Financial Regulator Simplifies Stock Market Rules to Attract More Listings
UK Reports Decline in Small Boat Crossings Across the English Channel
UK Government Creates Emergency Support Fund for Financially Pressured Universities
Scottish Government Launches Economic Strategy Focused on Innovation and Renewable Industries
UK Expands Sustainable Farming Incentives to Support Environmental Measures
UK Government Introduces New Neighbourhood Policing Standards Across England and Wales
UK Competition Regulator Opens Review of Artificial Intelligence Foundation Models
UK Deepens Indo-Pacific Security Cooperation After Talks With Singapore and Japan
UK Announces Rail Modernisation Plan for Northern England With New Infrastructure Funding
UK Government Updates Housing Planning Rules to Accelerate Residential Construction
UK Approves Major North Sea Offshore Wind Project to Support Clean Power Goals
UK Health Service Begins Major Digital Upgrade to Cut Hospital Waiting Times
Bank of England Holds Interest Rates Steady as UK Inflation Pressures Remain Persistent
UK Universities and Industry Expand Space and Defense Research Partnerships
House of Lords Approves Social Housing Bill Amendments on Shared Ownership Rights
House of Lords Advances Civil Aviation Bill With New Passenger Protection Measures
UK Government Suspends Tariffs on Fertilizer and Food Imports to Reduce Costs
Russell Group Universities Support New UK Business Department Focused on Innovation
UK Parliament Opens Inquiry Into Transport Barriers Facing Young Jobseekers
Home Builders Federation Calls for Lower Costs as New UK Government Sets Housing Priorities
Andy Burnham Meets UK Devolved Leaders to Strengthen Regional Cooperation
Andy Burnham Holds First International Calls With Trump, Macron, and Zelenskyy
Andy Burnham Reshuffles Cabinet With John Healey Appointed Chancellor of the Exchequer
Andy Burnham Government Removes VAT From Electricity Bills to Cut Household Costs
Andy Burnham Becomes United Kingdom Prime Minister After Sir Keir Starmer Resigns
×