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McDonald’s Reaches Deal to Sell Russia Business to Alexander Govor

A view exhibits a closed McDonald’s restaurant in Moscow, Russia (Image: Reuters)

Govor agreed to retain staff for not less than two years and fund exiting liabilities to suppliers, landlords and utilities, McDonald’s stated

  • AFP
  • Last Updated:May 20, 2022, 20:21 IST
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McDonald’s has reached a deal to promote its Russia enterprise to Russian businessman Alexander Govor, a licensee of the chain, the restaurant firm stated Thursday. The announcement comes three days after McDonald’s introduced it was exiting the Russian market within the wake of the Ukraine invasion.

Govor agreed to retain staff for not less than two years and fund exiting liabilities to suppliers, landlords and utilities, McDonald’s stated.

The value of the transaction was not disclosed.

McDonald’s stated Monday it will promote the complete Russian portfolio of 850 eating places using 62,000 staff, citing the humanitarian disaster within the wake of the Ukraine invasion, which has additionally sparked worldwide sanctions.

“The business in Russia is no longer tenable, nor is it consistent with McDonald’s values,” the corporate stated in an announcement that introduced plans to take a one-time cost of $1.2 billion to $1.four billion to jot down off the funding.

Govor, a licensee since 2015, has operated 25 eating places in Siberia. He is co-founder of Neftekhimservice, a refining firm, and a board member of one other agency hat owns the Park Inn lodge and personal clinics in Siberia.

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