Behemoth fast-food chain McDonald's has begun the process of selling its business in Russia after 30 years of operation.
Chris Kempczinski, the chief executive of McDonald’s, wrote a message to franchisees, employees and suppliers that was obtained by The New York Times.
He said: “It is a complicated issue that’s without precedent and with profound consequences."
As result, McDonald’s it set to record a write-off of around £1.1billion and recognise “foreign currency translation losses", the company said in the statement.
In March, McDonald’s closed all its restaurants in Russia, including the site in Pushkin Square in Moscow, which was the first in the country.
Since Putin's bloody invasion of Ukraine, many companies decided to halt operations or close offices in Russia following employee and consumer pressures.
When McDonald's ceased to operate, so too did Starbucks and Yum Brands — the parent company of KFC and Pizza Hut.
But few entirely left citing employment concerns, employee welfare and the question of re-entering the country again.
Mr Kempczinski added: “Some might argue that providing access to food and continuing to employ tens of thousands of ordinary citizens is surely the right thing to do.
"But it is impossible to ignore the humanitarian crisis caused by the war in Ukraine. And it is impossible to imagine the Golden Arches representing the same hope and promise that led us to enter the Russian market 32 years ago.”
McDonald’s plans to sell its business to a local buyer and they will be unable to use the McDonald’s name, logo or branding.
It said in a statement that its “priorities include seeking to ensure the employees of McDonald’s in Russia continue to be paid until the close of any transaction and that employees have future employment with any potential buyer”.
Mr Kempczinski wrote that after nearly half a century of Cold War animosity, the image of the Golden Arches shining above Pushkin Square "heralded for many, on both sides of the Iron Curtain, the beginning of a new era”.
The company opened its doors in Russia in January 1990, with more than 30,000 customers served on opening day, according to the company.
He said it was not an easy decision, "nor will it be simple to execute given the size of our business and the current challenges of operating in Russia".
But, he said, "the end state is clear”.
McDonald's restaurants in Ukraine are also closed but the company has said it continues to pay full salaries to its employees.
French carmaker Renault also announced on Monday that it was selling its share in Renault Russia as well as its stake in Russian automaker Avtovaz.
Other large firms such as British energy companies Shell and BP also left Russia over concerns about Vladimir Putin ’s invasion of Ukraine.
