McDonald's Makes Shocking Decision for All Restaurants in Russia

McDonald's is ceasing all operations in Russia amid President Vladimir Putin's ongoing invasion of Ukraine. The largest fast-food company in the world previously paused all operations in Russia in early March, days after the invasion began on Feb. 24. McDonald's had been operating in Russia for over 30 years.

"The humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald's to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald's values," the company said in a statement on Monday. McDonald's expects to take a $1.2 billion to $1.4 billion write-offs and recognizes the "significant foreign currency translation losses previously recorded in shareholders' equity."

McDonald's began the process of selling its Russian business to a local buyer. This includes the "de-Arching" of restaurants there, which involves removing all references to McDonald's branding. However, the company plans to keep its trademarks in Russia. The company also vowed to make sure employees are paid until any sale is completed and that they are employed by potential buyers.

"We have a long history of establishing deep, local roots wherever the Arches shine," McDonald's CEO Chris Kempczinski said. "We're exceptionally proud of the 62,000 employees who work in our restaurants, along with the hundreds of Russian suppliers who support our business, and our local franchisees. Their dedication and loyalty to McDonald's make today's announcement extremely difficult. However, we have a commitment to our global community and must remain steadfast in our values. And our commitment to our values means that we can no longer keep the Arches shining there."

McDonald's plans to keep its restaurants in Ukraine operating and is paying full salaries to its employees there. The company is also supporting local relief efforts through Ronald McDonald House Charities. The McDonald's System is also supporting Ukrainian refugees throughout Europe.

McDonald's paused all operations in Russia on March 8. Kempczinski told employees at the time the company's "values mean we cannot ignore the needless human suffering unfolding in Ukraine." He cited the late CEO Fred turner's motto of "do the right thing" when faced with a difficult decision. "That philosophy is enshrined as one of our five guiding values, and there are countless examples over the years of McDonald's Corporation living up to Fred's simple ideal," Kempczinski wrote. "Today is also one of those days."

Russia invaded Ukraine on Feb. 24, escalating the conflict between the two countries that began when Russia annexed Crimea in 2014. The invasion created the largest refugee crisis in Europe since World War II. The United Nations High Commissioner for Refugees estimates that over 6.1 million Ukrainians have fled their country. After the invasion began, the U.S. and its allies began imposing crippling economic sanctions on Russia.