Once a Powerful Symbol in Russia, McDonald’s Withdraws

Hundreds of Muscovites line up outside the first McDonald's restaurant in the Soviet Union on its opening day, in Moscow, Wednesday, Jan. 31, 1990. (AP)
Hundreds of Muscovites line up outside the first McDonald's restaurant in the Soviet Union on its opening day, in Moscow, Wednesday, Jan. 31, 1990. (AP)
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Once a Powerful Symbol in Russia, McDonald’s Withdraws

Hundreds of Muscovites line up outside the first McDonald's restaurant in the Soviet Union on its opening day, in Moscow, Wednesday, Jan. 31, 1990. (AP)
Hundreds of Muscovites line up outside the first McDonald's restaurant in the Soviet Union on its opening day, in Moscow, Wednesday, Jan. 31, 1990. (AP)

Two months after the Berlin Wall fell, another powerful symbol opened its doors in the middle of Moscow: a gleaming new McDonald’s.

It was the first American fast-food restaurant to enter the Soviet Union, reflecting the new political openness of the era. For Vlad Vexler, who as a 9-year-old waited in a two-hour line to enter the restaurant near Moscow’s Pushkin Square on its opening day in January 1990, it was a gateway to the utopia he imagined the West to be.

“We thought that life there was magical and there were no problems,” Vexler said.

So it was all the more poignant for Vexler when McDonald’s announced it would temporarily close that store and nearly 850 others in response to Russia’s invasion of Ukraine.

“That McDonald’s is a sign of optimism that in the end didn’t materialize,” said Vexler, a political philosopher and author who now lives in London. “Now that Russia is entering the period of contraction, isolation and impoverishment, you look back at these openings and think about what might have been.”

McDonald’s said in a statement that “at this juncture, it’s impossible to predict when we might be able to reopen our restaurants in Russia.” But it is continuing to pay its 62,500 Russian employees. The company said this week that it expects the closure to cost around $50 million per month.

Outside a McDonald’s in Moscow last week, student Lev Shalpo bemoaned the closure.

“It’s wrong because it was the only affordable place for me where I could eat,” he said.

Just as McDonald’s paved the way for other brands to enter the Soviet market, its exit led to a cascade of similar announcements from other US brands. Starbucks closed its 130 outlets in Russia. Yum Brands closed its 70 company-owned KFC restaurants and was negotiating the closure of 50 Pizza Huts that are owned by franchisees.

McDonald’s entry into the Soviet Union began with a chance meeting. In 1976, McDonald’s loaned some buses to organizers of the 1980 Moscow Olympics who were touring Olympic venues in Montreal, Canada. George Cohon, then the head of McDonald’s in Canada, took the visitors to McDonald’s as part of the tour. That same night, the group began discussing ways to open a McDonald’s in the Soviet Union.

Fourteen years later, after Soviet laws loosened and McDonald’s built relationships with local farmers, the first McDonald’s opened in downtown Moscow. It was a sensation.

On its opening day, the restaurant’s 27 cash registers rang up 30,000 meals. Vexler and his grandmother waited in a line with thousands of others to enter the 700-seat store, entertained by traditional Russian musicians and costumed characters like Mickey Mouse.

“The feeling was, ‘Let’s go and see how Westerners do things better. Let’s go and see what a healthy society has to offer,’” Vexler said.

Vexler saved money for weeks to buy his first McDonald’s meal: a cheeseburger, fries and a Coca-Cola. The food had a “plasticky goodness” he had never experienced before, he said.

Eileen Kane visited the original McDonald’s often in 1991 and 1992 when she was an exchange student at Moscow State University. She found it a striking contrast from the rest of the country, which was suffering frequent food shortages as the Soviet Union collapsed.

“McDonald’s was bright and colorful and they never ran out of anything. It was like a party atmosphere,” said Kane, who is now a history professor at Connecticut College in New London, Connecticut.

McDonald’s entry into the Soviet Union was so groundbreaking it gave rise to a political theory. The Golden Arches Theory holds that two countries that both have McDonald’s in them won’t go to war, because the presence of a McDonald’s is an indicator of the countries’ level of inter-dependence and their alignment with US laws, said Bernd Kaussler, a political science professor at James Madison University in Harrisonburg, Virginia.

That theory held until 2014, when Russia annexed Crimea, Kaussler said.

Kaussler said the number of countries now withdrawing from Russia, and the speed with which they acted, is unprecedented. He thinks some - including McDonald’s - might calculate that it's unwise to reopen, which would leave Russia more isolated and the world less secure.

“As the Russian economy is becoming less inter-dependent with the US and Europe, we basically have fewer domestic economic factors that could mitigate current aggressive policies,” Kaussler said.

Vexler said the admiration for the West that caused Russians to embrace McDonald’s three decades ago has also shifted. Russians now tend to be more anti-Western, he said.

Anastasia Chubina visited a McDonald’s in Moscow last week because her child wanted one last meal there. But she was indifferent about its closure, suggesting Russians will get healthier if they stop eating fast food.

“I think we lived without it before and will live further,” she said.

Entrepreneur Yekaterina Kochergina said the closure could be a good opportunity for Russian fast-food brands to enter the market.

“It is sad, but it’s not a big deal. We’ll survive without McDonald’s,” she said.



Trump Carves Up World and International Order with It

Analysts say talks to end the war in Ukraine 'could resemble a new Yalta'. TASS/AFP
Analysts say talks to end the war in Ukraine 'could resemble a new Yalta'. TASS/AFP
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Trump Carves Up World and International Order with It

Analysts say talks to end the war in Ukraine 'could resemble a new Yalta'. TASS/AFP
Analysts say talks to end the war in Ukraine 'could resemble a new Yalta'. TASS/AFP

By casting doubt on the world order, Donald Trump risks dragging the globe back into an era where great powers impose their imperial will on the weak, analysts warn.
Russia wants Ukraine, China demands Taiwan and now the US president seems to be following suit, whether by coveting Canada as the "51st US state", insisting "we've got to have" Greenland or kicking Chinese interests out of the Panama Canal.
Where the United States once defended state sovereignty and international law, Trump's disregard for his neighbors' borders and expansionist ambitions mark a return to the days when the world was carved up into spheres of influence.
As recently as Wednesday, US defense secretary Pete Hegseth floated the idea of an American military base to secure the Panama Canal, a strategic waterway controlled by the United States until 1999 which Trump's administration has vowed to "take back".
Hegseth's comments came nearly 35 years after the United States invaded to topple Panama's dictator Manuel Noriega, harking back to when successive US administrations viewed Latin America as "America's backyard".
"The Trump 2.0 administration is largely accepting the familiar great power claim to 'spheres of influence'," Professor Gregory O. Hall, of the University of Kentucky, told AFP.
Indian diplomat Jawed Ashraf warned that by "speaking openly about Greenland, Canada, Panama Canal", "the new administration may have accelerated the slide" towards a return to great power domination.
The empire strikes back
Since the end of the Cold War, the United States has posed as the custodian of an international order "based on the ideas of countries' equal sovereignty and territorial integrity", said American researcher Jeffrey Mankoff, of the Center for Strategic and International Studies.
But those principles run counter to how Russia and China see their own interests, according to the author of "Empires of Eurasia: how imperial legacies shape international security".
Both countries are "themselves products of empires and continue to function in many ways like empires", seeking to throw their weight around for reasons of prestige, power or protection, Mankoff said.
That is not to say that spheres of influence disappeared with the fall of the Soviet Union.
"Even then, the US and Western allies sought to expand their sphere of influence eastward into what was the erstwhile Soviet and then the Russian sphere of influence," Ashraf, a former adviser to Indian Prime Minister Narendra Modi, pointed out.
But until the return of Trump, the United States exploited its position as the "policeman of the world" to ward off imperial ambitions while pushing its own interests.
Now that Trump appears to view the cost of upholding a rules-based order challenged by its rivals and increasingly criticized in the rest of the world as too expensive, the United States is contributing to the cracks in the facade with Russia and China's help.
And as the international order weakens, the great powers "see opportunities to once again behave in an imperial way", said Mankoff.
Yalta yet again
As at Yalta in 1945, when the United States and the Soviet Union divided the post-World War II world between their respective zones of influence, Washington, Beijing and Moscow could again agree to carve up the globe anew.
"Improved ties between the United States and its great-power rivals, Russia and China, appear to be imminent," Derek Grossman, of the United States' RAND Corporation think tank, said in March.
But the haggling over who gets dominance over what and where would likely come at the expense of other countries.
"Today's major powers are seeking to negotiate a new global order primarily with each other," Monica Toft, professor of international relations at Tufts University in Massachusets wrote in the journal Foreign Affairs.
"In a scenario in which the United States, China, and Russia all agree that they have a vital interest in avoiding a nuclear war, acknowledging each other's spheres of influence can serve as a mechanism to deter escalation," Toft said.
If that were the case, "negotiations to end the war in Ukraine could resemble a new Yalta", she added.
Yet the thought of a Ukraine deemed by Trump to be in Russia's sphere is likely to send shivers down the spines of many in Europe -- not least in Ukraine itself.
"The success or failure of Ukraine to defend its sovereignty is going to have a lot of impact in terms of what the global system ends up looking like a generation from now," Mankoff said.
"So it's important for countries that have the ability and want to uphold an anti-imperial version of international order to assist Ukraine," he added -- pointing the finger at Europe.
"In Trump's world, Europeans need their own sphere of influence," said Rym Momtaz, a researcher at the Carnegie Endowment for Peace.
"For former imperial powers, Europeans seem strangely on the backfoot as nineteenth century spheres of influence come back as the organising principle of global affairs."