McDonald’s has struck a deal to sell its Russian business to Russian businessman Alexander Gower, the chain’s licensee, the restaurant company said on Thursday. The announcement comes three days after McDonald’s announced its exit from the Russian market due to Ukraine’s invasion.
McDonald’s said Gower agreed to retain employees for at least two years and exit liabilities to suppliers, landlords and utilities.
The transaction price was not disclosed.
McDonald’s on Monday said it would sell its entire Russian portfolio of 850 restaurants employing 62,000 workers, citing the humanitarian crisis in the wake of Ukraine’s invasion, which has also sparked international sanctions.
“The business in Russia is no longer tenable, nor is it consistent with McDonald’s values,” the company said in a statement that announced plans to take a one-time charge of $1.2 billion to $1.4 billion to write off the investment.
Licensed Gower has operated 25 restaurants in Siberia since 2015. He is a co-founder of Neftekhimservice, a refining company, and a board member of another firm, Hat, that owns the Park Inn Hotel and private clinics in Siberia.
