Putin Slams McDonald's: No Red Carpet for Return to Russia

Key Highlights

• Putin Rejects Warm Return for McDonald's: Putin criticized McDonald's exit from Russia and made it clear that any potential return would not be welcomed with open arms, stressing the need to protect Russian business interests.
• Return on Russia’s Terms: Putin stated that Western companies wanting to re-enter Russia must do so on terms favorable to Russian partners, with the government working on a framework to manage such returns.
• Tough Stance on Western Tech Firms: Putin voiced strong support for restricting U.S. tech companies like Zoom and Microsoft, aligning with calls to bolster Russia's local software industry in response to Western sanctions.

Putin has made it clear he does not plan to welcome McDonald's with open arms if it plans to come back to Russia.

The company withdrew from Russia in 2022, as a result of Western countries placing sanctions on the country because of the war in Ukraine. A Russian investor who has been running 25 restaurants in Siberia for the company as a franchise partner since 2015 bought the company’s operations.

In a conversation with Oleg Paroyev, CEO of Russian fast-food chain 'Vkunso I Tochka' (Russian for 'Tasty and That’s It'), Putin said, "They (McDonald's) put everyone in a difficult position, ran away, and now, if they want to come back, are we supposed to roll out the red carpet for them? Of course not. I have talked with colleagues, and I have already tasked the government with working out a framework for the possible return of companies wishing to re-enter the Russian market - calmly and without any hostility, taking into account that the most important thing is to protect the interests of our businesses."

"I replied - let them come back but make sure it’s on your terms. If it is advantageous for you, let them return. If it works for you, go ahead, if not, we’ll make it so it does. That’s it," Putin said.

On Monday, the news agency AFP reported that Putin threatened to put pressure on Western companies that work against Russia’s interests, as part of efforts to support the local software industry.

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"We need to throttle them. I completely agree, and I say this without hesitation," he said in response to a businessman's call to curb the activities of US tech companies Zoom and Microsoft, which currently provide only limited services in Russia. Like McDonald's, several other Western firms left Russia or significantly reduced operations in the country after Moscow's military offensive on Ukraine, triggering a barrage of economic sanctions from Kyiv's allies.”

Putin said that Russia has not kicked anyone out, rather it has provided "the most favorable conditions for them to work in our market, and they are trying to throttle us".