McDonald's is closing more than 800 restaurants in Russia indefinitely

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McDonald's is closing more than 800 restaurants in Russia indefinitely
People walk past a closed McDonald's restaurant in Moscow, August 20, 2014.REUTERS/Tatyana Makeyeva
  • McDonald's is temporarily closing Russian restaurants.
  • Workers will continue to receive their regular salaries.
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McDonald's will temporarily shut down its more than 800 restaurants in Russia, CEO Chris Kempczinski said in a statement Tuesday. The chain will continue paying its 62,000 Russian employees.

Kempczinski and McDonald's condemned Russia's attacks on Ukraine in the statement.

"The conflict in Ukraine and the humanitarian crisis in Europe has caused unspeakable suffering to innocent people. As a system, we join the world in condemning aggression and violence and praying for peace."

Ukrainian employees will also continue receiving their full salaries and other "immediate financial support" from the employee assistance fund, he said.

McDonald's charitable arm, The Ronald McDonald House Charities Poland Care Mobile, is providing medical care and aid to refugees at the Ukraine-Poland border, and another Care Mobile is coming from Latvia for further assistance, McDonald's said.

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Kempczinski says he's unsure when it might be possible to reopen Russian restaurants, but the chain will continue monitoring to "determine if any additional measures are required." The chain is experiencing disruptions to the supply chain as a result, he said.

McDonald's has previously closed restaurants in the region amidst tensions and threats. In 2014, the fast-food giant temporarily closed its three locations in Crimea, the Ukrainian peninsula, when it was annexed by Russia.

Fast-food chains have been relatively slow to react to Russian attacks on Ukraine compared to other industries. Tech giants like Netflix, Apple, and Paypal all suspended operations in Russia.

Yum Brands, the parent company of KFC and Taco Bell, said that it will suspend development of new restaurants in Russia, though it did not comment on if it will pause current restaurant operations, Reuters reported. Matters could be complicated by local franchising agreements, which may leave the decision to close up to each location's operator, a franchise expert told The New York Times. McDonald's owns the majority of its 850 Russian locations, giving it more power to suspend business.

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