"Xiaomi, Renault, and Now McDonald's"... Global Companies Exiting Russian Market

McDonald's, Renault, Lenovo, Xiaomi, etc.

Closed McDonald's store in Russia. / Photo by TASS, Yonhap News

[Asia Economy Reporter Na Ye-eun] Several Western companies that had maintained their presence in Russia since the invasion of Ukraine are reportedly withdrawing from the Russian market.

According to TASS news agency and others on the 16th (local time), McDonald's announced in a statement, "After operating in Russia for over 30 years, we will withdraw from the local market," and added, "We have initiated the process of selling our Russian business."

Chris Kempczinski, CEO of McDonald's, said, "Due to the increased unpredictability caused by the Ukraine situation, it is neither desirable to continue operations in Russia nor consistent with McDonald's values."

He further stated that the business in Russia will be sold to a local entrepreneur. However, the new owner will not be allowed to use the McDonald's brand name or logo.

Additionally, as a consequence of the war, French automobile company Renault is also reported to have sold its stakes in Russian subsidiaries to the Russian government and the Moscow city government and withdrawn from the market.

According to the media, Renault transferred 100% of its shares in the Moscow-based factory 'Renault Rossiya' to the Moscow city government. It also handed over 68% of its shares in the Russian local automobile company 'Avtovaz' to the Russian state automotive research institute 'NAMI.'

Xiaomi signboard.
Photo by Yonhap News

Meanwhile, even Chinese companies, which had not actively imposed sanctions on Russia following the invasion of Ukraine, are quietly withdrawing from the Russian market.

According to The Wall Street Journal, major PC manufacturer Lenovo, smartphone maker Xiaomi, and the world's largest drone manufacturer DJI are quietly pulling out of the Russian market.

Lenovo, which ranks second in the Russian PC market, stopped shipments immediately after the war in Russia began and Western countries' sanctions took effect. Xiaomi has also effectively halted shipments to Russia by not delivering products there in recent weeks.

Drone company DJI also made an unusual move last month by announcing the suspension of business operations in both Russia and Ukraine. The company explained that it decided to stop sales to prevent its drones from being used in the Ukraine war.