Burger King's parent company, Restaurant Brands International (TSX:QSR) (Restaurant Brands International (TSX:QSR)), has said its Russian independent operator has "refused" to close its 800 restaurants despite requests to suspend operations.
Following the Kremlin's continued attacks on Ukraine, the Restaurant Brands chain announced last week that it would suspend all corporate and marketing support for its 800-plus franchised outlets in Russia
The Russian chain is a joint venture with businessman Alexander Kolobov, a Ukrainian investment firm and Russia's VTB Capital, now sanctioned by the US as an affiliate of a major Russian bank.
Restaurant Brands owns a 15% minority stake in the Russian joint venture, which is in the process of being wound up.
In an open letter to employees on Thursday, Restaurant Brands International (TSX:QSR) president David Shear explained that the structure of the company's agreement in Russia hampers its ability to close its restaurants in the market.
Any changes ‘would ultimately require the support of Russian authorities on the ground and we know that practically will not happen any time soon’, said Shear.
Shear added that RBI has made a donation of US$1mln to the United Nations’ refugee agency (UNHCR) and had distributed US$2mln free meal coupons to Ukrainian refugees who have fled the country.