McDonald's and Renault sell their branches in Russia
US fast food giants McDonald's and French car maker Renault on Monday began selling their Russia businesses, making them the latest major Western companies to leave Russia since it invaded Ukraine in February.
Renault intends to sell its subsidiary in Russia to the Moscow City Administration, and its stake in Russian automaker AvtoVAZ to a local state-owned institute.
Renault stated, on Monday, that its board of directors approved the sale of its stake, amounting to 67.69 percent, in AvtoVAZ, the company that manufactures cars, including (Lada) and (Nami), to the Central Scientific Research Institute of Automobiles of the Russian Federation.
The agreement provides for a six-year option for Renault to buy back its stake in AvtoVAZ.
Renault CEO Luca de Meo described the decision as "difficult but necessary".
"We are making a responsible choice towards our 45,000 employees in Russia, while preserving the company's performance and our ability to return to Russia in the future in a different context," he said.
The French carmaker Renault announced on Wednesday that it had suspended the activities of the Renault plant in Moscow and was assessing "possible options regarding its stake" in its Russian subsidiary, AvtoVaz, in a move that came after mounting pressure on its "overwhelming presence". In Russia, according to "AFP".
And Renault announced, last March, that it would stop production at its plant in Moscow, amid growing criticism of its presence in Russia.
On the other hand, McDonald's announced that it has started liquidating its business in Russia, which includes 850 restaurants employing 62,000 people.
The fast food company cited the humanitarian crisis caused by the war, saying that sticking to its Russia business is "no longer defensible, and not in line with McDonald's values".
The Chicago-based company announced, in early March, that it would temporarily close its stores in Russia, but would continue to pay employees.
She said she would seek to sell the restaurants to a Russian buyer, to keep these workers working and paying their salaries, until the closure process is completed.
The potential buyer was not identified.
CEO Chris Kempczynski said the dedication and loyalty of employees and hundreds of Russian suppliers to McDonald's made the decision to leave difficult.
"Nevertheless, we have a commitment to our global community and must remain steadfast in our values," Kempczynski added in a statement.
As it tries to sell its restaurants, McDonald's said it plans to start removing gold logos and other symbols and signage bearing the company's name.
She said she would keep her trademarks in Russia.
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