Russia Expands McDonald’s Investigation to 200 Outlets

Either Ronald McDonald needs to clean up his Russian locations or Putin is retaliating for economic sanctions.

“No more Nice Mr. Guy, McDonald…”

From Bloomberg.com:

“Russian consumer-safety regulators are conducting inspections at more than 200 McDonald’s Corp. (MCD) restaurants around the country.

Russian courts have temporarily closed nine restaurants, the Oak Brook, Illinois-based company said in a statement on its Russian corporate website. McDonald’s said it disagreed with the decisions and that it will appeal to a higher court.

McDonald’s arrived in Soviet-era Russia in 1990 and was seen as a symbol of the nation’s rising prospects, helping open the communist nation to foreign enterprise. While regulators have cited violations of sanitary rules by McDonald’s, the timing and scope of the shutdowns are seen as a response to Western sanctions in Russia.

The original restaurant in Moscow’s Pushkin square, which drew long lines when it first opened, is currently shut under the court order.

The U.S. and European Union imposed sanctions against Russian companies and officials after President Vladimir Putin annexed Crimea earlier this year, escalating the worst standoff between the two sides since the Cold War. In response to the sanctions, Putin banned $9.5 billion in food imports from Western countries.

McDonald’s has more than 35,600 restaurants worldwide, with 440 in Russia as of the end of August. The shares of the company rose 1.3 percent to $91.04 at the close in New York on Oct. 17.”

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s