Burger King says business partner ‘refused’ to end operations in Russia

Burger King's attempts to pull out of Russia amid its conflict with Ukraine are being stymied by an uncooperative business partner running its operations there, its parent says.

The parent company of Burger King says it doesn’t have free rein to halt its operations in Russia, citing an uncooperative business partner and the complex structure of the original deal it struck to enter the country years ago.

Restaurant Brands International, which also owns Tim Hortons and Popeyes, said in a letter through president David Shear on Thursday that while it’s working to pull out of Russia — a move taken by multinationals including Starbucks, Coca-Cola and more amid the war in Ukraine — it’s been stymied in those attempts by one of its main business partners in the country.

When Burger King first entered Russia in 2010, it did so through a deal with Russian restaurateur Alexander Kolobov and other partners in the region.

Kolobov is responsible for operating the more than 800 Burger King locations in Russia, but has not been receptive to RBI’s attempts to pull out of the region, according to Shear.

“We contacted the main operator of the business and demanded the suspension of Burger King restaurant operations in Russia. He has refused to do so,” Shear wrote.

The company says it has cut off all support to its Russian franchises and says it’s donating any proceeds from those operations to the United Nations’ refugee agency.

RBI has also moved to get rid of its 15-per cent ownership stake in the joint venture.

Shear says any further attempts to cut off Burger King Russia’s use of the brand would require the support of authorities on the ground in the country, which he conceded in his letter “will not practically happen anytime soon.”