Russian economy meltdown as major US brand rules out return to country

Putin is facing a growing economic crisis (Image: Getty)

The fast-food giant McDonald's has ruled out an imminent return to Russia in a major blow for the Kremlin. In the past few days there had been much speculation that the US company was preparing to re-enter the Russian market.

The rumours were prompted by news that McDonalds had applied to register its trademarks in Russia. However, the company dismissed the rumours, saying in a post to their X social media channel that "our position is clear and remains unchanged."

McDonald's has no current plans to return to Russia (Image: Getty)

McDonalds said they were simply trying to protect their brand and prevent outsiders from using it.

"Intellectual property is one of our most valuable assets," the company said.

"McDonald's regularly renews ownership of its trademarks around the world, even in countries where it has no operations. We do this to secure our brand."

The company reminded people that it was one of the first international businesses to condemn Putin's full-scale invasion of Ukraine and leave the Russian market in May 2022.

"This decision is a testament to the company's values, and we remain true to those values," McDonald's assured.

Over a thousand Western companies have left Russia since the 2022 invasion.

Some left because of costs and disruptions brought by sanctions and payment issues while others, particularly retailers, in protest against Russia's actions.

The car company Renault sold its majority stake in Avtovaz to the Russian state in 2022, reportedly for only one rouble but with a six-year option to buy it back.

Volkswagen completed the sale of its Kaluga production plant and local subsidiaries in May 2023.

While the Kremlin approved the sale of Zara owner Inditex's Russian business to a UAE-based buyer in April 2023.

The possibility of a peace deal has raised hopes that Western companies could seek to return to the Russian market.

Kirill Dmitriev, Putin's special envoy on international economic and investment cooperation, said in February he expected a number of U.S. companies to return as early as the second quarter of this year.