Kairat Boranbayev fails to reach the deal with McDonald’s

The relative of the ex-president of Kazakhstan Kairat Boranbayev, who is currently accused of embezzlement, failed to make a deal with McDonald’s in Russia. The information about the potential deal was announced by The Bell. However, in the late evening of May 19, the company revealed that it instead reached a deal with Alexander Govor, the chain’s franchisee in Russia.

According to the deal, Govor, who has been cooperating with McDonald’s since 2015, is going to buy all the chain’s portfolio in Russia. The businessman is going to develop the chain under a new brand.

«The deal must be approved by the regulator. It is expected that the approval might be received within a few weeks,» the company said in the statement.

McDonald’s also said that it agreed with the new owner that the chain’s employees will keep their jobs and salaries within at least two years after the deal. Moreover, the buyer is going to pay salaries to corporate workers in 45 restaurants until the deal is closed as well as meet obligations to suppliers, landlords and utility companies.

On March 9, McDonald’s announced the temporary closure of its 850 restaurants in Russia because of the Russian invasion of Ukraine. As the company’s data shows, the Russian business had accounted for 9% ($2 billion) of the chain’s revenue in total. Also, in March the company said the situation in Russia won’t affect its restaurants in Kazakhstan.

On May 16, McDonald’s revealed its plan to sell its business in Russia and leave the country.

McDonald’s is the global leader in the fast-food industry with more than 39,000 restaurants all over the world in more than 100 countries. About 95% of those restaurants are owned and controlled by local franchisees.