McDonald's Is Leaving Another Country Over Russia's War

In 1990, one year before the dissolution of the Soviet Union, thousands queued in Moscow to get their first taste of McDonald's at their flagship Russian store (per Business Insider). The iconic golden arches were a symbol of the collapsing union, as Russia opened its borders to a restaurant that is synonymous with American capitalism. At its highest point, 853 McDonald's were owned and operated in Russia, reports Bloomberg.  

When Russia invaded Ukraine in 2022, many businesses withdrew from Russia, such as Starbucks, Coca-Cola, and yes, McDonald's, via NBC News. Divesting major businesses is one way that privately-owned entities can sanction countries responsible for disrupting peace and violating human rights. But when McDonald's pulled its business from Russia, it also enforced other stipulations on surrounding countries. This has caused disruptions to business so great that some locations have been forced to shut down entirely — the latest casualty of which is Kazakhstan. 

Sanctions against Russia did not extend to Kazakhstan businesses on a government level; however, privately-owned businesses are able to enforce their own policies. On the condition of anonymity, multiple people relayed that McDonald's had prohibited Kazakh locations from sourcing meat patties from Russia, via Bloomberg. As a result, sourcing meat from other nations to Kazakhstan, which borders Russia, was ultimately too expensive, thanks to additional transportation costs. Kazakh McDonald's were forced to temporarily close in November 2022, due to inadequate inventory, reports Reuters. Being unable to find adequate sourcing for meat products and keeping up with demand while remaining profitable has led to the permanent closing of McDonald's in Kazakhstan. 

Supply issues are wreaking havoc on many Kazakh businesses in the wake of Russia's invasion of Ukraine. The fall of the Golden Arches is just one of the latest displays of the global turmoil the war in Ukraine has brought.