An extremely difficult decision
McDonald’s announced the strategic sale of its entire restaurant portfolio in Russia to local buyers. The new owner will not be permitted to use the McDonald’s name, logo, branding, or menu, while the company will continue to defend its trademarks in Russia.
Managers explained that the humanitarian crisis and ongoing uncertainty in Ukraine, coupled with broader business pressures, made it impossible to operate in Russia in a way that aligns with McDonald’s core values. The company emphasized that it would begin a transition that protects the interests of employees and suppliers as it moves toward a closing with a new owner.
McDonald’s noted the long, storied history of its brand presence in the country, highlighting thousands of employees and hundreds of Russian suppliers who have supported the network for decades. While the decision is painful, leadership stressed that its global commitments and values require acting in a manner consistent with those principles. A top executive was quoted affirming the company’s need to keep its regional operations consistent with its standards, even as the brand signals a new chapter in Russia.
Concurrently, McDonald’s clarified that restaurants in Ukraine would remain closed while the firm continues to pay its staff in full. The corporation also reaffirmed support through charitable initiatives focused on relief efforts in the region, with a broader corporate responsibility program extending aid to refugees and displaced workers across Europe.
According to the organization, European operations have actively contributed to humanitarian relief by providing meals, shelter, and job opportunities for Ukrainian families. The company estimated the write-off associated with leaving the Russian market at approximately 1.2 to 1.4 billion dollars, while the cumulative investments in Russia exceeded 2.5 billion dollars.
Plans were outlined for a relaunch in Russia under a new brand, anticipated in mid-summer, with the majority of suppliers and business relationships expected to be preserved. A source familiar with the plan indicated that the product range and restaurant network would be retained, with only the brand identity changing. The statement suggested that the transition would maintain supplier continuity, with the majority of partners being local to the region.
32 years in Russia
The first McDonald’s restaurant in Russia opened on January 31, 1990, in Moscow’s Pushkinskaya Square. Historical data from the brand’s footprint indicates it became one of the most frequented locations, drawing tens of millions of visitors over the years. The network served daily traffic in the hundreds of thousands and hosted billions of guest visits since its inception.
In the wake of Russia’s military actions in neighboring Ukraine, major outlets reported that McDonald’s began evaluating the closure of its Russia operations, a process that intensified in early March. Corporate communications subsequently confirmed a temporary pause in operations across the network in Russia, citing operational and logistical challenges while the local office continued to function. The organization projected ongoing commitments to employees and suppliers, including salary assurances during the wind-down period.
Officials stressed that safeguarding employee welfare remained the top priority, with both company-operated and franchise locations expected to maintain payroll as the transition proceeds. The broader regional effort includes ongoing support for supplier staff and continued, if temporary, employment arrangements to minimize disruption during the exit process.
Observers note that the situation is evolving, with multinational brands reassessing their footprints amid geopolitical tension and market volatility. This phase underscores the tension between global corporate responsibility and local economic realities, as McDonald’s navigates a rapid restructuring while honoring its commitments to staff and local communities. The company’s strategic withdrawal demonstrates how major brands intend to balance long-standing brand equity with pragmatic, values-aligned decisions in a rapidly shifting environment.