The multinational announced the temporary closure of its 847 restaurants Russians on March 8, but had not ruled out reopening 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 continuing our business in Russia was no longer tenable or consistent with our values.
she 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 the Golden Arches represent the same hope and promise that led us to enter the Russian market 32 years ago. »
McDonald’s, which made 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.
It will, however, retain the rights to its trademark, including its logo and menu, and remove the iconic arches from its restaurants.
It will also continue to pay its approximately 62,000 Russian employees until a sale is concluded, as it has done since the closure of its restaurants.
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, in the wake of the collapse of the Soviet Union, had been a powerful symbol.
More than 5,000 people rushed to the opening of his first restaurant, Pushkin Square, in Moscow.
Renault sells its assets… but plans to return
The car manufacturer Renault has 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 concretely sells its majority stake (67.69%) in the Avtovaz group, holder of the Lada brand, to NAMI, the Russian institute for research and development of automobiles and engines.
Its shares 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 to the city of Moscow.
All Renault activities in Russia were suspended at the end of March.
A Renault vehicle showroom in Saint Petersburg, Russia (archives)
Photo : Archyde.com
Renault did not disclose the amount of the transaction in its press release announcing the agreements. The Russian Minister of Trade and Industry, Denis Mantourov, had advanced at the end of April the sum ofa symbolic ruble
.
The most committed car manufacturer in Russia, Renault is not closing the door to a return to the country, however, since it has negotiated the option to buy back its shares in Avtovaz within six years.
« We have made 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. »
Renault’s management had already announced that it would spend in the first half a provision of approximately 2.2 billion euros (about C$3 billion) due to this sale.
Renault got involved in Avtovaz in 2008, before becoming its majority shareholder in 2014. He turned around the Russian group, which was in great difficulty.
Russia was the Renault group’s second largest market in the world behind Europe, with nearly 500,000 vehicles sold in 2021.
The Russian auto market, however, has collapsed since the start of the conflict in Russia, and Avtovaz factories are idling, if at all, due to a shortage of imported components caused by Western sanctions.