'The scale of the sanctions may have shocked Russian's political elite and Russia's leadership, but Russia is preparing to try and survive on its own and part of that means not having these western companies represented there.' 'This is an important symbol of the way that Russia is seen by the outside world. It's going to be pretty hard to see how they can reverse them in the short-term. Speaking on BBC Radio 4's Today programme, Dr James Rodgers, a reader in International Journalism at City, University of London, said: 'These companies are taking these decisions now. Speaking on Wednesday, a British professor said that the scale of sanctions from western companies 'may have shocked the Russian elite'. Some companies, such as McDonald's, say they will keep paying wages for now to their workers in Russia. McDonald's was joined by Starbucks, Coca-Cola, PepsiCo and General Electric by announcing on Tuesday that they will temporarily suspending business in Russia. McDonald's said on Tuesday that it has donated more than $5million to its employee assistance fund and to relief efforts. Unlike other big fast food brands in Russia that are owned by franchisees - including KFC, Pizza Hut, Starbucks and Burger King - McDonald's owns 84 per cent of its Russian locations. In a recent regulatory filing, the Chicago-headquartered company said its restaurants in Russia and Ukraine contributed 9 percent of its annual revenue, or around $2billion. McDonald's could take a big financial hit because of the closures. In an open letter to employees, McDonald's President and CEO Chris Kempckinski said closing those stores for now is the right thing to do
McDonald's has also temporarily closed 108 restaurants in Ukraine and continues to pay those employees. McDonald's works with hundreds of Russian suppliers, for example, and serves millions of customers each day. Last week, shoppers swarmed IKEA stores to pick up last-minute bargains in Moscow and St Petersburg as well as at Siberian outlets in Omsk and Novosibirsk, all of which have now closed their doors. McDonald's was not the first company to be swamped by Russian customers after announcing it would close for business in the country. 'The situation is extraordinarily challenging for a global brand like ours, and there are many considerations,' Kempczinski wrote in the letter. 'Our values mean we cannot ignore the needless human suffering unfolding in Ukraine,' Kempczinski said, adding that it's impossible to know when the company will be able to reopen its Russian stores. In an open letter to employees, McDonald's President and CEO Chris Kempckinski said closing those stores for now is the right thing to do. The company said it would continue paying its 62,000 employees there 'who have poured their heart and soul into our McDonald's brand.' When it the chain first opened, long lines of Russians were also seen outside McDonald's restaurants, with people eager to try Western fast food. McDonald's, like this one in Moscow, and across Russia and Ukraine account for nine per cent of McDonald's annual revenue. The American company directly owns and operates most of its locations in Russia, where it has had an iconic presence since opening a restaurant in Moscow in 1990, signaling the end of the Cold War. Russians have been finding it increasingly difficult to get their hands on Western goods as more sanctions are imposed, pummeling the country's economy.Īs bombs continued to fall on Ukraine, a video of the queue showed dozens of cars waiting below McDonald's iconic glowing yellow 'M', suggesting the people of Russia are not loving the brutal sanctions.Īs the camera panned, the queue of cars for the drive-through service could be seen curving around a round-about, under an overpass and off into the distance. Hundreds of cars were seen queuing in the snow outside the fast food joint, with one witness saying the line stretched for almost 'half a mile'. On Tuesday night, a McDonald's in Moscow was swamped last night with customers desperate to get one last Big Mac. The competitive sales come after McDonald's said it will close its 850 locations in Russia as western companies continue to pull out of the country following Putin's invasion in Ukraine that has sparked global outrage.
One seller tried to cash in on the closure by selling a McDonald's nuggets meal for £159, while another tried to sell 10 McChicken burgers and nine cheeseburgers for a staggering £191. Meanwhile, another ambitious Russian attempted to flog pots of McDonald's sauces - including the popular cheese sauce - for almost £40. The competitive McDonald's sales come after McDonald's said it will close its 850 locations in Russia as western companies continue to pull out of the country