McDonald's Closure in Russia- Approximately half of Russia's 440 Mc Donald's outlets are under investigation while 12 restaurants have been closed including the largest outlet in the world, the Moscow's Pushkin Square, authorities said Friday.
Twelve outlets of the biggest fastfood chains in the world have been closed since Russia's food safety agency Rospotrebnadzor began inspections to its more than 200 McDonald's branches across the country over alleged consumer fraud issue and sanitary violation.
McDonald's Closure in Russia is reportedly caused by retribution for sanctions done by America and Europe over Russia's position in the Ukraine crisis.
"Health and safety regulation is an instrument that's often used by the Kremlin to gain leverage in political disputes," declares Nonna Crane, a lawyer in specializing in Russian business issues at Chadbourne & Parke.
"For example, Russian health regulators in 2006 banned imports of wine and mineral water from Georgia amid deteriorating relations that led to military conflict between the two countries," she adds.
McDonald's Closure in Russia is hard to imagine especially the biggest McDonald's store in the world the Moscow's Pushkin Square will also be closed. McDonald's has been Russians favorite since it opened its Pushkin store in 1990.
The fastfood giant didn't reveal the outlet's revenue, but Euromonitor, market-research group approximates McDonald's Russia sales were about 8 percent or $2.2 billion of its worldwide sales of $28 billion last year.
With McDonald's Closure in Russia getting intense, McDonald's release its statement on weekend stating, "Court has ordered the further temporary suspension of operations at nine outlets, including Pushkin Square. We disagree with the court's decision and will appeal it."
