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McDonald's in Russia to reopen under new name after buyer found

McDonald’s Russia has found a buyer to take over its Russian restaurants. They will be rebranded under a new name.

Alexander Govor, who has 25 restaurants in Siberia and is now willing to purchase all 847, said the fast-food giant.

McDonald’s declared plans for selling its Russian business Monday. This makes it one of the most prominent global brands to leave Ukraine after the invasion.

Mr Gover has committed to keeping all 62,000 Russian employees at the company for at least two more years, on equal terms.

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He will also pay the salaries for the corporate staff of the burger chain until the sale closes.

Russian businessman and licensee since 2015 is also co-founder of Neftekhimservice (a refining company) and a member of a board of another business, which owns the Park Inn Hotel and private clinics located in Siberia.

After receiving regulatory approval, the sale is expected to close in a few weeks.

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McDonald’s previously stated that it would suffer a loss of more than $1bn (PS848bn), due to the exit.

The company stated that it would not remove its brand, branding or golden arches from the restaurants, but will keep its trademarks.

Since more than 30 years, McDonald’s Russia has been operating.

In March, the firm temporarily closed its Russian stores and continued to pay employees.

According to the company, it was losing $55m (PS45m per month) due to shut downs in Russia and Ukraine.

McDonald’s announced Monday that it could not keep its business in Ukraine. They cited the humanitarian crisis in Ukraine as well as an “unpredictable” operating environment.

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Chris Kempczinski, chief executive, stated that it was a difficult decision. However, it was impossible to imagine the Golden Arches as the same hope and promise that drove us to the Russian market 32-years ago.

In Moscow, the first McDonald’s restaurant in Russia was opened in 1990, just after the fall of Berlin Wall.

It was the first American fast-food restaurant to open in the Soviet Union and a strong symbol of capitalism’s success as Cold War tensions eased.

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