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.



Homes Smashed, Help Slashed: No Respite for Returning Syrians

People walk along a street, on the day US President Donald Trump announces that he would order the lifting of sanctions on Syria, in Latakia, Syria May 14, 2025. REUTERS/Karam Al-Masri
People walk along a street, on the day US President Donald Trump announces that he would order the lifting of sanctions on Syria, in Latakia, Syria May 14, 2025. REUTERS/Karam Al-Masri
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Homes Smashed, Help Slashed: No Respite for Returning Syrians

People walk along a street, on the day US President Donald Trump announces that he would order the lifting of sanctions on Syria, in Latakia, Syria May 14, 2025. REUTERS/Karam Al-Masri
People walk along a street, on the day US President Donald Trump announces that he would order the lifting of sanctions on Syria, in Latakia, Syria May 14, 2025. REUTERS/Karam Al-Masri

Around a dozen Syrian women sat in a circle at a UN-funded center in Damascus, happy to share stories about their daily struggles, but their bonding was overshadowed by fears that such meet-ups could soon end due to international aid cuts.

The community center, funded by the United Nations' refugee agency (UNHCR), offers vital services that families cannot get elsewhere in a country scarred by war, with an economy broken by decades of mismanagement and Western sanctions.

"We have no stability. We are scared and we need support," said Fatima al-Abbiad, a mother of four. "There are a lot of problems at home, a lot of tension, a lot of violence because of the lack of income."

But the center's future now hangs in the balance as the UNHCR has had to cut down its activities in Syria because of the international aid squeeze caused by US President Donald Trump's decision to halt foreign aid.

The cuts will close nearly half of the UNHCR centers in Syria and the widespread services they provide - from educational support and medical equipment to mental health and counselling sessions - just as the population needs them the most. There are hundreds of thousands of Syrian refugees returning home after the fall of Bashar al-Assad last year.

UNHCR's representative in Syria, Gonzalo Vargas Llosa, said the situation was a "disaster" and that the agency would struggle to help returning refugees.

"I think that we have been forced - here I use very deliberately the word forced - to adopt plans which are more modest than we would have liked," he told Context/Thomson Reuters Foundation in Damascus.

"It has taken us years to build that extraordinary network of support, and almost half of them are going to be closed exactly at the moment of opportunity for refugee and IDPs (internally displaced people) return."

BIG LOSS

A UNHCR spokesperson told the Thomson Reuters Foundation that the agency would shut down around 42% of its 122 community centers in Syria in June, which will deprive some 500,000 people of assistance and reduce aid for another 600,000 that benefit from the remaining centers.

The UNHCR will also cut 30% of its staff in Syria, said the spokesperson, while the livelihood program that supports small businesses will shrink by 20% unless it finds new funding.
Around 100 people visit the center in Damascus each day, said Mirna Mimas, a supervisor with GOPA-DERD, the church charity that runs the center with UNHCR.

Already the center's educational programs, which benefited 900 children last year, are at risk, said Mimas.

Nour Huda Madani, 41, said she had been "lucky" to receive support for her autistic child at the center.

"They taught me how to deal with him," said the mother of five.

Another visitor, Odette Badawi, said the center was important for her well-being after she returned to Syria five years ago, having fled to Lebanon when war broke out in Syria in 2011.

"(The center) made me feel like I am part of society," said the 68-year-old.

Mimas said if the center closed, the loss to the community would be enormous: "If we must tell people we are leaving, I will weep before they do," she said.

UNHCR HELP 'SELECTIVE'

Aid funding for Syria had already been declining before Trump's seismic cuts to the US Agency for International Development this year and cuts by other countries to international aid budgets.

But the new blows come at a particularly bad time.

Since former president Assad was ousted by opposition factions last December, around 507,000 Syrians have returned from neighboring countries and around 1.2 million people displaced inside the country went back home, according to UN estimates.

Llosa said, given the aid cuts, UNHCR would have only limited scope to support the return of some of the 6 million Syrians who fled the country since 2011.

"We will need to help only those that absolutely want to go home and simply do not have any means to do so," Llosa said. "That means that we will need to be very selective as opposed to what we wanted, which was to be expansive."

ESSENTIAL SUPPORT

Ayoub Merhi Hariri had been counting on support from the livelihood program to pay off the money he borrowed to set up a business after he moved back to Syria at the end of 2024.

After 12 years in Lebanon, he returned to Daraa in southwestern Syria to find his house destroyed - no doors, no windows, no running water, no electricity.

He moved in with relatives and registered for livelihood support at a UN-backed center in Daraa to help him start a spice manufacturing business to support his family and ill mother.

While his business was doing well, he said he would struggle to repay his creditors the 20 million Syrian pounds ($1,540) he owed them now that his livelihood support had been cut.

"Thank God (the business) was a success, and it is generating an income for us to live off," he said.

"But I can't pay back the debt," he said, fearing the worst. "I'll have to sell everything."