Russia under ‘chips sanctions’

MOSCOW. – The head of the company now running the former McDonald’s Corp chain of restaurants in Russia told RBC TV that producers of French fries are refusing to supply to the country and warned that attempts to increase domestic processing are fraught with difficulties.

McDonald’s quit Russia after a Western backlash against Moscow’s military campaign in Ukraine, which included a barrage of economic sanctions, and sold all the restaurants it owned to a local licensee in May.

Restaurants began opening under the new name Vkusno & tochka, or “Tasty and that’s it”, on June 12. CEO Oleg Paroev said the chain had sold almost 120 000 burgers on the opening day.

The company has since been forced to admit that it is facing a shortage of French fries until autumn, blaming a poor harvest in Russia and supply chain woes

“What has happened now is that due to well known events many foreign companies, I would even say all major producers of fries, have refused to deliver this product to Russia,” Paroev told RBC TV, a business channel, late on Thursday.

Paroev said that factories in both “friendly” and “unfriendly” countries that produce fries belong to five or six major companies, whose headquarters are based in unfriendly nations and which have therefore refused to supply to Russia. – Reuters

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