McDonald’s Announces Agreement to Sell Russia Business to Partner

This content was published on May 19, 2022 – 14:02

Moscow, May 16 (EFE).- McDonald’s Group announced today that it has reached an agreement to sell its Russian business to businessman and franchise partner Alexandr Govor, which will save tens of thousands of jobs.

“Under the terms of the agreement, Mr. Govor will acquire the chain’s entire restaurant portfolio and will develop it under a new brand,” McDonald’s said in a statement, noting that the Russian businessman is partner since 2015 and only in Siberia. operate 25 franchises opened by him.

The deal still needs to be clarified, including its clearance by regulators, and the final details are expected to be finalized in the “coming weeks”.

“The purchase contract provides for the maintenance of jobs under equivalent conditions for all employees for at least two years”, specifies McDonald’s.

The buyer, the statement added, also agreed to finance until the end of the transaction the salaries of the company’s employees who work in 45 regions of Russia, and will assume the obligations towards suppliers, owners and communal services. .

The announcement of the agreement, the financial terms of which have not been disclosed, comes three days after McDonald’s announced that it would definitively end its activity in Russia.

McDonald’s CEO Chris Kempczinski said at the time that he was proud of the more than 60,000 workers and that the decision to cease operations in Russia was “extremely difficult”.

But “our commitment to our values ​​means we can’t stop there any longer,” Kempczinski said.

On March 8, McDonald’s had already announced that it was temporarily ceasing its operations in Russia and that it was temporarily closing its approximately 850 restaurants after the start of the Russian military campaign in Ukraine.

The departure of the company from Russia has great symbolic and economic weight.

The fast food chain was one of the first Western brands to gain a foothold when it opened a branch in Moscow in 1990, just before the fall of the Soviet Union and shortly after the demolition of the Berlin Wall, becoming thus the symbol of the end of the cold war. ECE

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