Restaurant Brands International shares in the red: Burger King parent company wants to give up business in Russia

However, this is likely to be a difficult undertaking due to the franchise partners there, Restaurant Brands International (RBI) announced on Thursday. The withdrawal from the country is planned, but will take some time.

“Would we like to suspend all Burger King activities in Russia immediately? Yes,” CEO David Shear wrote in an open letter. “Can we enforce a stoppage today? No.” The reason that the approximately 800 branches remained open are the franchise partners controlled by the businessman Alexander Kolobov. RBI only holds 15 percent of the joint venture in Russia.

However, the group has stopped supporting the branch network and is no longer investing in Russia itself. However, due to the contracts, it is difficult to process the business and it may require the approval of the Russian authorities. This is not to be expected quickly. The exit is a complicated legal process that is likely to drag on, according to RBI boss Shear.

Burger King’s rival McDonald’s announced last week that it would close its around 850 fast food restaurants in Russia. In Germany, Burger King’s partner Kolobov is still remembered for conflicts about alleged hygiene deficiencies and poor working conditions. In 2014, the chain had therefore terminated his license. It was later agreed that the 84 branches in Germany controlled by his company would continue to operate.

Restaurant Brands International shares were temporarily down 0.52 percent in NYSE trading at $57.58, while shares on the Toronto Stock Exchange fell 0.49 percent to $72.69.

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TORONTO (dpa-AFX)

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