Burger King partner in Russia refuses to close 800 locations, as fast-food chain moves to divest

nbc news

By Amelia Lucas
   Burger King is moving to divest its 15 percent stake in its Russian business, but the burger chain said it can’t legally suspend operations in the market right away.
    The Restaurant Brands International chain announced last week it was suspending all corporate support for its 800-plus franchised locations in Russia in response to the Kremlin’s ongoing attacks on Ukraine. The suspension includes refusing approvals for further investment or expansion and pausing operations, marketing and its supply chain.
    But the company’s International President David Shear laid out in an open letter to employees on Thursday that the structure of the company’s Russian business hampers its ability to shutter restaurants in the market like some of its competitors.
    “Would we like to suspend all Burger King operations immediately in Russia? Yes. Are we able to enforce a suspension of operations today? No,” Shear said.
    Burger King entered Russia through a joint venture with businessperson Alexander Kolobov, Investment Capital Ukraine and VTB Capital, which has been hit by U.S. sanctions as an affiliate of a major Russian bank.
    Shear said the burger chain contacted Kolobov, who is responsible for the day-to-day operations and oversight of the Russian locations, and “demanded the suspension of Burger King restaurant operations in Russia.” Kolobov refused, according to Shear.
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