Hungry Russians Heartbroken As Domino's Pizza Set To Close Down Stores Over Putin's War In Ukraine
Domino’s Pizza is now the latest fast-food restaurant to close down its stores in Russia as a result of Vladimir Putin’s ongoing war against Ukraine, RadarOnline.com has learned.
In a surprising development to come months after McDonald’s became the first fast-food restaurant to close its stores across the country in May, Domino’s Pizza’s master franchisee – DP Eurasia – has recently been forced to “evaluate its presence” as a result of heavy sanctions placed upon the nation by Western powers.
According to Daily Star, Domino’s is one of the few remaining Western fast-food chains to remain in Russia since Putin first invaded Ukraine more than ten months ago.
DP Eurasia’s shares have reportedly plummeted since the invasion, forcing the company overseeing Domino’s presence in Russia to reconsider the financial viability of remaining open.
"The company notes recent speculation regarding an exit by the group from its Russian operations,” the company announced in a statement on Wednesday. "DP Eurasia is evaluating its presence in Russia, the impact of sanctions and its continuing ability to serve its customers in Russia.”
"Consequently, the company is considering various options which may include a divestment of its Russian operations,” the statement continued. "Whilst work on a potential transaction is ongoing, there can be no certainty as to the outcome."
The company’s announcement on Wednesday also came just days after the United Kingdom’s House of Commons found DP Eurasia to be one of the few prominent businesses to still be doing business in Russia despite Western sanctions and the horrors Putin wages against Ukraine.
MP Mark Pritchard recently asked the UK Treasury to investigate ways to discourage companies like DP Eurasia from doing business with Russia while the war against Ukraine continues.
"There is no doubt that the UK has led the Ukraine war effort with the United States, and there is no doubt that the UK has led the international sanctions regime, but this urgent question is about UK companies,” Pritchard said while addressing the Treasury earlier this month.
“Does the minister share my concern that DP Eurasia is selling pizzas in Russia, Unilever is selling Cornetto ice creams in Russia, and HSBC is still servicing Russian corporate clients?” he continued. “Does he think that is acceptable?”
"What more action can the Government take to encourage those companies to remove their services and businesses from Russia and to divest themselves fully, rather than just give interviews to corporate magazines and offer warm words?"
As RadarOnline.com previously reported, DP Eurasia’s decision to close Domino’s Pizza stores across Russia also comes as Russia’s economy continues to crash as a result of foreign sanctions.
The nation officially entered a recession in November after its economy suffered a 4.1% fall in the second quarter followed by an equally devastating fall of another 4% in its third quarter.
As a result, Putin has reportedly been forced to borrow upwards of $12 billion from private Russian investors to continue funding his war efforts against Ukraine.
Powered by RedCircle