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• The fast-food chain has been criticized for not taking steps regarding the war
• The company will continue paying its 62,000 Russian employees
McDonald’s (NYSE: MCD) announced on Tuesday it will temporarily close 850 locations in Russia due to the country’s invasion of Ukraine.
Chief Executive Chris Kempczinski wrote in a letter that though the chain will temporarily halt all operations, it will continue paying its 62,000 Russian employees.
“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,” Kempczinski wrote in his letter.
McDonald’s has been criticized for not taking steps regarding the war as its restaurants account for 2% of its systemwide sales in Russia and Ukraine.
McDonald’s has been doing business in Russia for quite long time and it has become a significant part of the company’s business.
“In the thirty-plus years that McDonald’s has operated in Russia, we’ve become an essential part of the 850 communities in which we operate,” said Kempczinski.
“At the same time, our values mean we cannot ignore the needless human suffering unfolding in Ukraine.”
The CEO added that it is not clear when the company will be able to operate in Russia again. McDonald’s is facing supply chain disruptions and other operational restrictions.
McDonald’s has decided to pay full salaries to its Ukrainian employees and has also donated $5 million to its employee assistance fund.
Coco-Cola also announced similar boycott from Russia on Tuesday.
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