McDonald's is pulling out of Crimea. It turns out that the fast food chain has "temporarily" suspended operations at its restaurants as conflict heats up.
The current conflict involves Crimea's annexation by Russia, which Ukraine and the West do not acknowledge. This annexation has, in turn, affected businesses in the area in addition to worrying companies with assets in the Black Sea peninsula, according to Reuters.
"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," according to the company on its website. "We believe it is prudent and responsible to sort through these details thoroughly. Additionally, due to the suspension of necessary financial and banking services, we have no option but to close our three restaurants in Crimea. It is important to note that this is strictly a business decision which has nothing to do with politics. We are taking numerous steps to support our employees during this time. We hope to reopen our restaurants soon so we can welcome back our loyal customers."
Economic relations between Russia and Ukraine have worsened since Russia annexed Crimea, according to Reuters. In particular, targeted sanctions imposed by the United States and the European Union have alarmed foreign investors. It's perhaps not surprising that McDonald's is also pulling out. Earlier this week, Ukraine banned seven Russian food companies from selling some of their products in the country, according to Forbes.
Yet Crimea's first deputy prime minister has stated that these closing won't seriously affect Russia.
"Russia has a lot of its own café chains, including fast food, and they can promptly take this niche," said Rustam Termigaliyev, according to Russia's Interfax news agency.
