McDonald's leaves Kazakhstan: because of the war in Ukraine, the company has nowhere to get meat

McDonald's Corporation is going to leave Kazakhstan. Meat supply disruptions, according to knowledgeable people, are caused by a full-scale Russian invasion of Ukraine, as they left the country without replacing Russian raw materials. Writes about it Bloomberg.

Photo: IStock

The world's largest fast food restaurant chain is leaving the country of 20 million that borders Russia to the north in just six years. The Russian invasion of Ukraine, which began in 2022, has disrupted global supply chains.

While Kazakh businesses are not subject to sanctions against Moscow, McDonald's, which fled Russia after the invasion, has banned its local franchisees from buying meat patties from Russian suppliers. 24 McDonald's restaurants owned by Food Solutions KZ LLP suspended operations in November 2022 due to supply issues.

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According to experts, Kazakh businesses could not buy meat patties from local or European suppliers, since higher prices and the cost of transporting goods across a vast country would mean running a business at a loss.

The fate of McDonald's in Kazakhstan is also complicated by the owner of the franchise Kairat Boranbaev, who was detained in March on charges of embezzlement. Boranbayev, a relative of former President Nursultan Nazarbayev who fell out of favor with the country's new leadership after a bloody riot a year ago, opened a chain of fast food restaurants in Kazakhstan in 2016.

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Boranbayev also owned a McDonald's franchise in Belarus, which lost its license last year due to supply issues.

McDonald's, whose arrival in the Soviet Union in 1990 symbolized the opening up of the country's economy and the turn towards capitalism, in May sold his restaurant portfolio in Russia. At its peak before the invasion, McDonald's operated 853 restaurants in Russia. Alexander Govor, who bought the restaurants from McDonald's, reopened them under a new brand "Vkusno i Tochka".

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