By Michael Dabaie

 

McDonald's Corp. has agreed to sell its Russian business to existing licensee Alexander Govor after saying days earlier it will exit the Russian market.

The company said Mr. Govor will acquire McDonald's entire restaurant portfolio and operate the restaurants under a new brand. Mr. Govor has been a McDonald's licensee since 2015 and operates 25 restaurants in Siberia, the company said.

McDonald's earlier this week said it would exit the Russian market after more than 30 years of operations in the country. In March, McDonald's said it had temporarily closed restaurants in Russia and paused operations in the market.

McDonald's said Monday that the humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, led it to conclude that continued ownership of its business in Russia was no longer tenable.

The company said Thursday it expects the deal to close in the coming weeks.

The sale and purchase agreement provides for employees to be retained for at least two years, on equivalent terms, McDonald's said. The buyer has also agreed to fund the salaries of corporate employees who work in 45 regions of the country until closing, as well as fund existing liabilities to suppliers, landlords and utilities, the company said.

 

Write to Michael Dabaie at michael.dabaie@wsj.com

 

(END) Dow Jones Newswires

May 19, 2022 08:41 ET (12:41 GMT)

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