Hilary Russ

NEW YORK (Reuters), McCDonald’s Corp stated Tuesday that all its 847 restaurants in Russia would be temporarily closed. The announcement comes as other brands are under increasing pressure to halt their operations in Russia after Moscow’s invasion of Ukraine.

The closure of the McDonald’s (NYSE:) restaurants will also carry symbolic importance in Russia, where the first location to open, in central Moscow in 1990, became an iconic symbol of flourishing American capitalism as the Soviet Union fell.

McDonald’s announced that they would pay salaries for its Russian 62,000 employees. Due to its global size, McDonald’s is frequently copied by other businesses if the company takes a stand on an issue and makes major changes in operations.

William Edwards (international franchise consultant) said of the conversations between companies about whether or not to leave Russia for moral reasons, “If they decide that something is done, then most likely others will do it.”

Several organizations, including New York’s state pension fund, pressured large global brands such as McDonald’s (NASDAQ 🙂 Inc to halt operations in Russia.

Russia describes its actions in Ukraine as a “special operations.”

When the Soviet Union collapsed, 32 years ago McDonald’s opened its first outlet in Pushkin Square. The opening of this new restaurant was symbolic of the end to Cold War tensions. It also came at a crucial time for many young Russians who wanted blue jeans and other Americana.

Chris Kempczinski CEO of McDonald’s, stated that it was impossible to know when restaurants will reopen in Russia. This statement was sent to all employees by email on Tuesday. It is also posted online. We are currently experiencing disruptions in our supply chain and other operational impacts. The humanitarian situation will be closely monitored.”

84% of its almost 850 Russian locations are owned and operated by Rosinter, while the remainder are managed by Rosinter Foods Holding, which is based in Moscow.