CHICAGO — With locations in over 100 countries, McDonald’s Corp. announced on May 16 that it would no longer operate in Russia, as the country’s invasion of Ukraine oppose the company’s values. 

Following its announcement, McDonald’s entered a sale and purchase agreement with its current licensee Alexander Govor. A Russian businessman, Govor will acquire McDonald’s entire restaurant portfolio in Russia but will operate them under a new brand, which includes changes to the restaurant name, logo and menu.

“We have a long history of establishing deep, local roots wherever the arches shine,” said Chris Kempczinski, president and chief executive officer of McDonald’s. “We’re exceptionally proud of the 62,000 employees who work in our restaurants, along with the hundreds of Russian suppliers who support our business, and our local franchisees. Their dedication and loyalty to McDonald’s make today’s announcement extremely difficult.”

The sale agreement offers employees the abillity to be retained for at least two years, on equivalent terms. The buyer has also agreed to fund the salaries of corporate employees who work in 45 regions of the country until closing, as well as fund existing liabilities to suppliers, landlords and utilities, said McDonald’s.

The agreement remains subject to certain conditions, including regulatory approval, with closing expected to occur in the coming weeks.