Russian President Vladimir Putin has said that he will not “roll out the red carpet” for McDonald’s if it decides to return to the country, state-run TASS news agency reported.
McDonald’s exited Russia in 2022 after Western sanctions were imposed on the country due to the war in Ukraine. The company sold its operations to a Russian investor who had been a franchise partner since 2015 and managed 25 restaurants across Siberia.
In a conversation with Oleg Paroyev, CEO of Russian fast-food chain ‘Vkunso I Tochka’ (Russian for ‘Tasty and That’s It’), Putin said, “They (McDonald’s) put everyone in a difficult position, ran away, and now, if they want to come back, are we supposed to roll out the red carpet for them? Of course not. I have talked with colleagues, and I have already tasked the government with working out a framework for the possible return of companies wishing to re-enter the Russian market – calmly and without any hostility, taking into account that the most important thing is to protect the interests of our businesses.”
He also sarcastically asked Paroyev, hinting at McDonald’s, whether his “not-so-conscientious partners” had the right to buy back the company after leaving it. When the president got told about the possibility, he said, “Remember that old joke? Only chumps settle up. It’s the same thing here.”
“There can’t even be any doubts about this. Together with you, we will work through everything, think it through, and go down to the last detail. But only to our advantage,” he said while assuring full government support to Russian entrepreneurs.
The Russian president recalled that some major companies operating in other sectors of the economy have already addressed him, saying that their foreign partners have hinted at their desire to return and resume business ties.
“I replied – let them come back but make sure it’s on your terms. If it is advantageous for you, let them return. If it works for you, go ahead, if not, we’ll make it so it does. That’s it,” Putin said.
While leaving Russia in 2022, McDonald’s sold the company to a Russian investor, Alexander Govor, who had been a partner of the food brand’s franchise since 2015. The Vkusno I Tochka chain has been in Russia since June 12, 2022.
On Monday, Putin had threatened to “throttle” Western firms remaining in Russia and acting against its interests, as part of Moscow’s efforts to strengthen domestic software development, news agency AFP reported.
“We need to throttle them. I completely agree, and I say this without hesitation,” he said in response to a businessman’s call to curb the activities of US tech companies Zoom and Microsoft, which currently provide only limited services in Russia.
Like McDonald’s, several other Western firms left Russia or significantly reduced operations in the country after Moscow’s military offensive on Ukraine, triggering a barrage of economic sanctions from Kyiv’s allies.
Putin said that Russia has not kicked anyone out, rather it has provided “the most favourable conditions for them to work in our market, and they are trying to throttle us”.
Kirill Dmitriev, head of Russia’s sovereign wealth fund and Putin’s special envoy on economic cooperation, said in April that he received requests from a lot of US firms wishing to come back.
