KIEV: McDonald’s Corp said it had closed its restaurants in Crimea, prompting fears of a backlash as a prominent Moscow politician called for all of the US fast food chain’s outlets in Russia to be shut.
Crimea’s annexation by Russia, which Ukraine and the West do not acknowledge, has worried companies with assets in the Black Sea peninsula as it is unclear how the change may affect their business.
McDonald’s said the decision was strictly based on business and had “nothing to do with politics.” Nevertheless, its move to temporarily close restaurants in Simferopol, Sevastopol and Yalta is likely to be seen as emblematic of the rift in Western-Russian relations, now at their
lowest point since the end of
the Cold War.
“Like many other multi-national companies, McDonald’s is currently evaluating potential business and regulatory implications which may result from the evolving situation in Crimea,” McDonald’s said in a statement. “Due to the suspension of necessary financial and banking services, we have no option but to close our three restaurants in Crimea.”
The Crimean outlets are not franchises, but owned and operated by McDonald’s itself.
The closures follow Geneva-based Universal Postal Deutsche Post’s announcement that it was no longer accepting letters bound for Crimea as delivery to the region was no longer guaranteed.
Economic relations between Russia and Ukraine have worsened since Russia annexed Crimea last month. Reuters
