‘Perghh, the‘ king ’is near under Putin’s footsteps.’
The owner of the fast food restaurant Burger King, Restaurant Brands, was forced to continue operations in Russia because his contract with the operator in the country ‘refused’ to follow the restrictions imposed.
As many as 800 Burger King outlets in Russia were forced to resume operations when a contract with local operator Alexander Kolobov forced the opening of stores even as several other brands acted to boycott or follow restrictions imposed by the West.
In a letter issued by Restaurant Brands president David Shear, they had contacted its main operator in Russia to suspend operations, but the application was rejected.
Shear added that any change in the form of Burger King’s business would require ‘Russian authority approval’ and the company expects its store branch may not suspend operations temporarily.
For the record, when Burger King entered the Russian market 10 years ago, the company had entered into joint venture partnerships with Alexander Kolobov including VTB Capital and Ukrainian investment firms.
VTB Capital is a subsidiary of VTB Bank which is the 2nd largest financial institution in Russia that has been subject to sanctions by the United States (US), United Kingdom (UK) and European countries.
Restaurant Brands which has a minority stake of 15% in the joint venture partnership is seen to be under pressure.
Meanwhile, Restaurant Brands is said to have stopped supply chain distribution and marketing in Russia in response to the sanctions, while rejecting any new investment offers in Russia.
In addition to Burger King, retail giant Marks and Spencer (M&S) is also facing similar problems due to contract issues with partners in Russia.
Complex agreements have prevented some western brands from closing stores in Russia, yet they are seen trying to carry out restrictions in their own way.
It is common knowledge that many fast food and beverage chains have imposed sanctions against Russia that acted to invade Ukraine and cause deaths.
