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McDonald's to sell Russian business to current licensee Alexander Govor — press release

The company’s press service stressed that Govor has served as a McDonald's licensee since 2015 and has operated 25 restaurants in Siberia

MOSCOW, May 19. /TASS/. McDonald's announced that it will sell its Russian business to current licensee Alexander Govor. This is according to a press release published on the portal PR Newswire on Thursday.

"McDonald's Corporation announced today that it has entered into a sale and purchase agreement with its existing licensee Alexander Govor. Under this agreement, Mr. Govor will acquire McDonald's entire restaurant portfolio and operate the restaurants under a new brand," the press release says.

The company’s press service stressed that Govor has served as a McDonald's licensee since 2015 and has operated 25 restaurants in Siberia.

According to the press release, "the agreement remains subject to certain conditions, including regulatory approval, with closing expected to occur in the coming weeks."

"The sale and purchase agreement provides for employees to be retained for at least two years, on equivalent terms. 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 press release says.

Earlier, McDonald's announced that it was to leave the Russian market and was going to sell its business in the country. The company made it clear that planned to sell the business to a "local buyer" who will not be able to use the previous name, logo and menu. In turn, a source at McDonald's told TASS that the chain's restaurants will continue to operate in the Russian Federation under a new brand in mid-June, while jobs, most suppliers and menus will remain, "in fact, only the name will go away."

A number of foreign companies announced the termination of work in Russia following its special military operation in Ukraine. McDonald's announced a temporary closure in March. In April, in a report for the first quarter of 2022, the corporation reported that its expenses resulted from the cessation of activities in Russia and Ukraine, amounted to $127 million.

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