The Big Mac is done in Russia. American fast-food giant McDonald’s announced on Monday that it would completely leave the Russian market, after being there for 32 years.
The company announced the temporary closure of 847 Russian restaurants on March 8, but did not decide on the reopening of its doors. The evolution of the war in Ukraine finally convinced him to sell all his restaurants.
The humanitarian crisis caused by the war in Ukraine and the resulting unpredictable economic environment led McDonald’s to conclude that the continuity of our business in Russia was no longer durable or consistent with our values. he explained in a press release.
” It is impossible to ignore the humanitarian crisis caused by the war in Ukraine. And it’s impossible to imagine that Golden Arches represents the same hope and commitment that led us to enter the Russian market 32 years ago. “
McDonald’s, which makes about 9% of its total revenue and 3% of its operating profit in Russia, says it plans to sell all of its restaurants to a local buyer.
However, it will retain its trademark rights, including its logo and menu, and remove iconic arches from its restaurants.
It will also continue to pay approximately 62,000 Russian employees until a sale is completed, as it has done since its restaurants closed.
McDonald’s will take a non-cash charge (no cash outflow) of between $ 1.2 billion and $ 1.4 billion due to its withdrawal from Russia.
The arrival of McDonald’s in Russia in 1990, after the collapse of the Soviet Union, became a powerful symbol.
More than 5,000 people rushed to the opening of its first restaurant, Pushkin Square, in Moscow.
Renault is selling its assets … but plans to return
Carmaker Renault announced the sale of its assets in Russia, as part of the first major nationalization carried out since the start of the offensive in Ukraine on February 24.
The French group is concretely selling its majority stake (67.69%) to the Avtovaz group, which holds the Lada brand, to NAMI, the Russian institute for research and development of vehicles and machinery.
Its parts in Renault Russia, which notably owns a factory manufacturing Renault and Nissan vehicles located not far from the capital, have for their part been sold in the city of Moscow.
All Renault activities in Russia were suspended at the end of March.
Renault did not disclose the value of the transaction in its press release announcing the agreements. Russia’s Minister of Trade and Industry, Denis Mantourov, advanced at the end of April the sum ofa symbolic ruble.
Russia’s most committed carmaker, Renault is not closing the door on returning to the country, however, as it has negotiated the option to repurchase its parts in Azovstav within six years.
” We made a difficult but necessary decision; and we make responsible choices among our 45,000 employees in Russia, while maintaining the Group’s performance and our ability to return to the country in the future, in a different context. “
Renault’s management has already announced that it will pass a provision of approximately 2.2 billion euros (about C $ 3 billion) in the first half of the year due to this sale.
Renault became involved with Avtovaz in 2008, before becoming a majority shareholder in 2014. He turned to the Russian group, which was very difficult.
Russia is the Renault group’s second largest market in the world behind Europe, with nearly 500,000 vehicles sold in 2021.
However, the car market in Russia has fallen since the conflict in Russia began, and Avtovaz factories are doing nothing, if any, due to a shortage of imported parts caused by Western sanctions. .
Source: Radio-Canada
