McDonald's to sell Russia restaurants to local operator

19/5/2022 6:10:00 PM

This, after more than three decades of presence in the country.

Corporate News, Mcdonald's

This, after more than three decades of presence in the country.

BENGALURU: McDonald's Corp is selling its Russia business to its current licensee Alexander Govor and the restaurants would operate under a new brand, ending more than three decades of presence in the country following its invasion of Ukraine.

Govor, who runs the franchise operation through his firm GiD LLC, has been a McDonald's licensee since 2015 and had helped the burger chain expand into remote Siberia, where he operates 25 restaurants.McDonald's and GiD declined to disclose the financial terms of the deal. The burger chain had said it would take a non-cash charge of up to $1.4 billion following a sale.

The deal with Govor provides for employees to be retained for at least two years on equivalent terms, McDonald's said on Thursday.He would pay the salaries of corporate employees in 45 regions of the country until the closure of the sale, which is expected in the coming weeks.

Read more:
The Star »

Clearing the cancer doubts before the snip

Dear Dr. G, I am in my late thirties and have a fear of becoming a father again. Read more >>

Russia to service foreign debt in roubles if other options blocked, says finance minister

Yellen confirms Russia debt-payment licence extension unlikely(May 18): Treasury Secretary Janet Yellen confirmed that it’s unlikely that the US will extend an exemption that enabled Russia to make bond payments on its foreign-currency debt, with investors now having had time to adjust to Moscow’s being cut off from the global financial system.“When we first imposed sanctions on Russia , we created an exemption that would allow a period of time that would allow for an orderly transition to take place and for investors to be able to

Fate of Mariupol defenders uncertain after surrendering to RussiaSome Russia n leaders have called for prisoners to be executed.

Finland, Sweden apply to join Nato as Russia pummels Ukraine | Malay MailKYIV, May 18 — Finland and Sweden formally applied to join Nato today, prompted by Russia ’s invasion of Ukraine and triggering one of the most significant changes in Europe’s security architecture in decades. The applications came after more than 250 Ukrainian fighters surrendered to Russia n...

Russia jumps to fourth position as oil supplier to India, tanker data showsNEW DELHI (May 17): Russia became the fourth-largest oil supplier to India in April, with volumes set to rise further in coming months as low prices spur demand from the world's No. 3 oil consumer and importer, tanker tracking data showed. Russia 's share in India's oil purchases rose to a record 6%, about 277,000 barrels per day (bpd) in April, up from about 66,000 bpd in March, when it was in 10th position, according to the data, which was supplied by

More Ukraine fighters surrendering in Mariupol, Russia saysKYIV/MARIUPOL, Ukraine (Reuters) - Moscow said nearly 700 more Ukrainian fighters had surrendered in Russia n-held Mariupol as it shored up a key gain in the south, while the United States became the latest Western country to reopen its embassy in Kyiv.

The world's largest burger chain owns about 84% of its nearly 850 restaurants in Russia and became one of the biggest global brands to exit the country earlier this week, while saying it would retain its trademark.for the latest news you need to know.A (May 18): Treasury Secretary Janet Yellen confirmed that it’s unlikely that the US will extend an exemption that enabled Russia to make bond payments on its foreign-currency debt, with investors now having had time to adjust to Moscow’s being cut off from the global financial system..

Govor, who runs the franchise operation through his firm GiD LLC, has been a McDonald's licensee since 2015 and had helped the burger chain expand into remote Siberia, where he operates 25 restaurants. McDonald's and GiD declined to disclose the financial terms of the deal. Washington is considering blocking Russia’s ability to pay its US bondholders by allowing a key waiver to expire on May 25, which could put Moscow closer to default. The burger chain had said it would take a non-cash charge of up to $1. I think it’s reasonably likely that the licence will be allowed to expire.4 billion following a sale. “We are not going to call any defaults, we have money — unless Western countries make it impossible to service our debts,” Siluanov told a forum. The deal with Govor provides for employees to be retained for at least two years on equivalent terms, McDonald's said on Thursday.

He would pay the salaries of corporate employees in 45 regions of the country until the closure of the sale, which is expected in the coming weeks.” Western sanctions on Russia ban transactions with Russia’s finance ministry, central bank or national wealth fund. Yellen’s remarks suggest she sees no major dangers in allowing a Russian default on its dollar bonds. Russia's Industry and Trade Minister Denis Manturov said the deal was the result of a"long and difficult" negotiation process and the government would provide Govor all the necessary assistance to set up operations. Earlier in the day, a local media report said one of the U.” That has allowed Moscow to keep paying investors and avert default on its government debt, and allowed US investors to continue to collect coupon payments.S. Speaking Wednesday in Bonn, Germany, ahead of a gathering of finance chiefs from the Group of Seven advanced economies, Yellen said that the US and its allies and partners share the goal of reducing Russia’s revenues in the wake of its invasion of Ukraine. fast food chain's largest franchisee operators in Russia, SPP, was a potential buyer.7 billion) worth of external sovereign bond payments to make before the end of the year.

Its owner Kairat Boranbayev runs a McDonald's franchise in Kazakhstan and Belarus. SPP did not immediately respond to a Reuters request for comment. “If Russia is unable to find a legal way to make these payments and they technically default on their debt, I don’t think that really represents a significant change in Russia’s situation,” Yellen said. McDonald's had in March decided to close its restaurants in the country, including the iconic Pushkin Square location in central Moscow - a symbol of flourishing American capitalism in the dying embers of the Soviet Union. Several other Western brands, including Imperial Brands and Shell, have also agreed to sell their Russian assets or hand them over to local managers. - Reuters Article type: metered . “That said, while we’re beginning to look at this, it would not be legal now in the United States for the government to seize” Russian assets, she said.