Russia | Is McDonald's coming back to Russia?

It was a symbol of the West's withdrawal from Russia in the summer of 2022: Across the country, the distinctive McDonald's logo—once a symbol of the arrival of capitalism and the Western way of life—disappeared and was replaced by "Vkusno i tochka" (Yummy and Delicious). Like many other Western companies, the US fast-food chain left Russia after the attack on Ukraine. This was a favorable opportunity for the Kremlin: "Sanctions are an opportunity for the national economy" became the motto of its economic policy.

McDonald's hastily officially sold its stores to its licensee, Alexander Govor, an entrepreneur from the Central Siberian mining town of Kemerovo , who had made a fortune in coal mining and oil processing. Russian media reported at the time that the purchase agreement included a buyback option until 2037. Vkusno i Tochka now has over 920 stores in 65 regions and employs 64,000 people.

There are several cases of such sales and renaming, especially in the restaurant industry. The coffee chain Starbucks is now Stars Coffee and is run by rapper Timati and a business partner. The buyback price is rumored to be $270 million. The chicken chain KFC became Rostic's after the sale. For many Russians, this is pure nostalgia, as this chain already existed in the 1990s.

At the end of April, McDonald's applied to re-register its trademark with the Patent and Trademark Office (Rospatent), the state news agency Ria Novosti reported. This sparked speculation about the burger chain's early return to Russia and also about a possible end to the war in Ukraine, which is considered a prerequisite. However, the McDonald's press office denied any plans to return, stating that this was standard procedure to prevent other companies from using the trademark.

The fact that the rumors persist is also due to the fact that several companies, such as Chanel, Rolex, and Hyundai, renewed their trademarks. As did the Swedish furniture giant Ikea , whose history symbolizes the past three years. Following its withdrawal, the Russian chain Gud Lakk and the Belarusian Swed House occupied the Swedish retailer's market segment. Yandex Market acquired the original's stock for 12.9 billion rubles (138 million euros) and sold it online until a Moscow court deemed the deal "unethical" last May. Ikea didn't sell the last stock until November 2024.

In April, the Association of Furniture and Wood Processing Enterprises (AMDPR) demanded that the Ministry of Industry and Trade impose protective tariffs on furniture imports from "hostile foreign countries." This primarily refers to Germany and Italy, which rank third and fourth among importing countries after China and Belarus, AMDPR Director General Timur Irtuganov explained to the daily newspaper Kommersant. In total, according to Irtuganov, Russia imports furniture worth 20 billion rubles (214 million euros) annually from "unfriendly countries."

Even if foreign companies want to return to Russia, it won't be easy for them. In March, President Vladimir Putin announced at a meeting of the Russian Union of Industrialists and Entrepreneurs that "the train has left the station" for companies whose markets are now occupied by Russian companies.

The Russian government is currently working on a list of conditions for return. So far, the following points have been established: The company must have paid its Russian employees salaries until the withdrawal, and it must not have any debts, such as tax arrears. Furthermore, and this point is likely to be considerably more sensitive, the company must not have provided financial support to the Ukrainian army, "foreign agents," or "undesirable organizations." According to Prime Minister Mikhail Mishustin, a special commission will decide on each company separately.

Last but not least, the question arises as to whether the Russian elite even wants the return of foreign companies. With the takeover of Danone's assets by the Chechen ruling Kadyrov family , it's clear that Russia's wealthy have secured a new lucrative source of income.

As early as early 2024, the opposition news site Proekt reported that Alexander Govor merely served as a front man for the businessman Arsen Kanokov in the purchase of the McDonald's branches. Kanokov served as President of the North Caucasus Republic of Kabardino-Balkaria from 2005 to 2013 and currently serves as a senator in the Federation Council, the upper house of the Russian parliament. According to Forbes, he ranked 160th among the richest Russians in 2021 with a fortune of $750 million. According to Proekt's research, Kanokov is also allegedly involved in the deals with Starbucks and KFC, as well as in the sale of the German hardware store chain Obi. This was sold to a supposed Konakov front company in July 2022 for a "symbolic sum." The multi-billionaire Alexei Mordashev is now said to be the owner.