McDonald's decides to shut nearly 1,000 outlets across Russia and Ukraine

Firm will continue to pay staff as it reverses the position it announced earlier this week that it intended to keep trading

McDonald's said earlier this week that it intended to remain open in Russia, even as many western companies closed operations.

McDonald’s is temporarily closing all 850 of its Russian locations, following mounting criticism that the chain failed to act quickly following the nation’s invasion of Ukraine.

The company will continue paying its 62,000 employees in Russia, McDonald’s said in a letter from chief executive Chris Kempczinski.

McDonald’s has also temporarily closed its 100 locations in Ukraine and continues to pay its employees there.

“As we move forward, McDonald’s will continue to assess the situation and determine if any additional measures are required,” Mr Kempczinski said.

“At this juncture, it’s impossible to predict when we might be able to reopen our restaurants in Russia. We are experiencing disruptions to our supply chain along with other operational impacts. We will also closely monitor the humanitarian situation,” he said.

European and US companies are increasingly pausing operations in Russia after its invasion, which has resulted in civilian deaths, hardship, and a refugee crisis.

The majority of McDonald’s locations in Russia are owned and operated directly by the company. This means the situation for McDonald’s is more complex than its franchise peers, as it has to consider the day-to-day business of running a restaurant.

• Bloomberg