In an open letter, Burger King said that while it has tried to stop its operations in Russia, its overseas partner has refused to close the locations.
The letter, from RBI’s International president, David Shear, said the company went into the Russian market 10 years ago in a partnership with Alexander Kolobov, who has been responsible for the day-to-day operations and oversight of the approximately 800 Burger King locations in Russia. RBI owns just 15% of the businesses in Russia.
Shear said the company “contacted the main operator of the business and demanded the suspension of Burger King operations in Russia. He has refused to do so.” Shear also said the company has stopped all corporate support for the restaurants, and is redirecting any profits from the business to the United Nations’ refugee agency.
While some companies, like McDonald’s, own more than 80% of its restaurants in Russia outright, Burger King’s minority ownership means that it is legally unable to shut down the businesses overseas, CNN explained. “There are no legal clauses that allow us to unilaterally change the contract or allow any one of the partners to simply walk away or overturn the entire agreement,” said Shear.
Many corporations in the west have faced public pressure to leave Russia after the country’s invasion of Ukraine, with at least 400 exiting the country since February 24, The Washington Post reported. But for others, like Burger King, legal agreements leave them bound to continue business.
Shear ended the letter by saying, “Would we like to suspend all Burger King operations immediately in Russia? Yes. Are we able to enforce a suspension of operations today? No. But we want to be transparent with our actions and explain the steps we have taken to stand with the international business community in response to Russia’s attack on Ukraine and its people.”
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