McDonald’s suspends operation of its restaurants in Kazakhstan

McDonald’s is going to temporarily suspend its restaurants from operation in Kazakhstan starting from November 18, according to the press service of Food Solutions KZ, which represents the American food giant in Kazakhstan.

No details have been provided for when restaurants might be re-opened.

Food Solutions KZ has been operating in Kazakhstan for six years. The company runs 24 restaurants under the McDonald’s franchise brand in Almaty, Astana, Aktobe, Kostanay and Karaganda providing jobs for 2,000 Kazakhstanis.

Over six years of operation, the company paid more than $6.5 million in taxes.

However, Kazakhstan’s authorities earlier expressed their concern over the deal with a land parcel in Karaganda. According to official reports, Food Solutions KZ bought 0.2 hectares of land in the center of the city of Karaganda for just $30,300. Given that there was no official auction and the price was extremely cheap, the authorities suspect wrongdoing by the company.

Food Solutions KZ is a franchisee of the McDonald’s brand in Kazakhstan. The company’s owner is Kairat Boranbayev, a member of the Nazarbayev family. Currently, he is in custody due to allegations of money embezzlement.