McDonald’s to sell Russian business to existing licensee
Following the decision to exit the Russian market due to the war in Ukraine, McDonald’s is selling its Russian business to its Siberian licensee, Alexander Govor.
McDonald's announced Thursday that it has reached an agreement to sell its Russian business to Alexander Govor, its current licensee in the market.
Govor will purchase all McDonald's locations in Russia and operate them under a new brand. He also agreed to keep employees for at least two years on comparable terms, to fund the salaries of corporate employees working in 45 different regions of the country until the deal closes, and to pay off existing liabilities to suppliers, landlords, and utilities.
"Following its announcement that it will exit the Russian market and has initiated a process to sell its Russian business, McDonald’s Corporation announced today that it has entered into a sale and purchase agreement with its existing licensee Alexander Govor," the company said in a press release.
In March, McDonald's suspended operations in all of its Russian restaurants while continuing to pay its employees.
McDonald's employs 62,000 people in Russia and operates over 850 restaurants.