Russia's economy: Loophole for McDonald's & Co. - Western companies are probably keeping their return options open
Created: 06/13/2022, 12:44 p.m
By: Patricia Huber
A return of Western companies to business in Russia is currently hardly conceivable.
But companies like McDonald's and Renault are still keeping this option open, according to a report.
Moscow – It doesn't matter whether it's fast-food chains like McDonald's or car manufacturers like Renault: the majority of Western companies have completely given up their business in Russia.
The Ukraine war and the sanctions against Russia have prompted companies to leave the country.
According to a report, however, some companies have apparently left a back door open in order to be able to return quickly.
Report on Russia's economy: McDonald's has 15 years to go back
As Die
Welt
reports, McDonald's, for example, has secured a right of return when selling over 700 restaurants.
This means that McDonald's can buy back the branches that have now been sold to the Russian businessman Alexandr Gowor within the next 15 years on market terms.
This emerges from documents from the Russian antimonopoly authority FAS.
Currently, the old branches of the well-known fast food chain are gradually being reopened under the new name "Wkusno i totschka" (in English: delicious and point).
The concept and the food are almost the same - only the brand is different.
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The buyback option doesn't seem to be uncommon.
According to
Welt
, a number of other companies should leave the door to Russia a crack open.
The French carmaker Renault is also said to have secured such a right – but only for the next six years.
Russia's economy: buyback option probably common clause
"I don't know of any company that is currently selling its Russia business without a buyback option," a western business consultant in Russia tells the
world
.
“The period for the buyback option is between five and 20 years.
But I've also heard of unlimited options," explains the consultant, who does not wish to be named.
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It remains to be seen whether the buyback option makes sense at all.
Roland Götz, an expert on Russian economics at the Freie Universität Berlin, explains that problems could also arise in this case.
It is not yet possible to say whether the buyback option will work in this way.
"For the Russians, after the current loss of image, it is also quite safe not to comply with the option," he explains to the
world
.
(ph)
