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Burger King owners in Russia refuse to close restaurants due to sanctions

RBI "suspended all corporate support for the Russian market, including operations, marketing, and supply chain support in addition to refusing approvals for new investment and expansion" in Russia, according to the statement

NEW YORK, March 18. /TASS/. Owners of Burger King fast food restaurants in Russia refused to leave the Russian market following the sanctions imposed against Moscow, according to RBI’s (Restaurant Brands International Inc., which owns Burger King) International President David Shear.

"We contacted the main operator of the business (in Russia - TASS) and demanded the suspension of Burger King restaurant operations in Russia. He has refused to do so," according to a statement by Shear posted on RBI’s website.

"There are no legal clauses that allow us to unilaterally change the (franchise) contract or allow any one of the partners to simply walk away or overturn the entire agreement," he explained.

"We started the process to dispose our ownership stake in the business. While we would like to do this immediately, it is clear that it will take some time to do so based on the terms of our existing joint venture agreement," Shear said.

RBI "suspended all corporate support for the Russian market, including operations, marketing, and supply chain support in addition to refusing approvals for new investment and expansion" in Russia, according to the statement.

Apart from VTB Capital, the Ukrainian financial group Investment Capital Ukraine (ICU) is part of the joint venture on the Russian market, Shear noted. Alexander Kolobov, the founder of Shokoladnitsa chain of coffee shops, control the operations of around 800 Burger King restaurants in Russia.

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