Shell Stop Buying Russia Oil, McDonald’s Restaurants Will Closed In Russia?- CR News

Shell has recently apologized for buying oil from Russia last week and has claimed that it would withdraw completely from any involvement in Russian hydrocarbons over the country’s invasion of Ukraine.  Shell Chief Executive Officer, Ben van Beurden told the media that they know that their decision of buying crude oil from Russia was not right and they are sorry for that. “We are acutely aware that our decision last week to purchase a cargo of Russian crude oil … was not the right one and we are sorry,” he said. 

Shell Stop Buying Russia Oil, McDonald's Restaurants Will Closed In Russia?

Last week it was made clear by Shell that it would exit all its Russian operations which included the flagship Sakhalin 2 LNG plant. Shell holds a 27.5 percent stake in this and 50 percent of this is owned and operated by Russian gas group Gazprom. The energy giant joined a bunch of companies, including BP, which claimed that it was abandoning its 19.75 percent stake in Russian oil giant Rosneft. Even after this, it continued buying crude oil from Russia

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Shell received a huge amount of criticism after receiving the crude oil at a discounted rate. The Ukrainian Foreign Minister, Dmytro Kuleba came forward and used the Twitter platform to showcase his anger on this subject. He tweeted- “Doesn’t Russian oil smell Ukrainian blood for you.”

“Exiting the Russian Market is a complex challenge” – Mr. Van Beurden 

Shell was asked for an explanation after its purchase of crude oil from Russia. Shell’s working supplies are made up of 8% of Russian supplies. “Changing this part of the energy system will require concerted action by governments, energy suppliers, and customers, and a transition to other energy supplies will take much longer,” Beurden said. The company has decided to immediately stop the purchase of Russian crude oil. It has also claimed to shut about 500 service stations there, as well as will halt its aviation fuel and lubricant operations in the country. The withdrawal from Russian petroleum products, pipeline gas, and liquefied natural gas (LNG) will be in a phased manner.

Shell Stop Buying Russia Oil, McDonald's Restaurants Will Closed In Russia?

“These societal challenges highlight the dilemma between putting pressure on the Russian government over its atrocities in Ukraine and ensuring stable, secure energy supplies across Europe, but ultimately, it is for governments to decide on the incredibly difficult trade-offs that must be made during the war in Ukraine” Beurden added. He also said that the firms would continue to work with governments on how to manage any potential impact on energy supplies. He promised that the profits generated from the remaining Russian oil will be dedicated to the funds aimed at helping people affected by the war in Ukraine.

All McDonald’s restaurants in Russia will be closed for an extended period.

McDonald’s will close all of its 850 restaurants in Russia and suspend all other operations, joining a growing list of western companies to reconsider their presence thereafter Vladimir Putin’s invasion of Ukraine.

After 30 years, the first McDonald’s restaurant in Moscow, Russia, and Ukraine account for roughly 9% of total sales. They made up less than 3% of operating income because wholly-owned restaurants such as those found in Russia are less lucrative than franchised ones.

When the first McDonald’s restaurant opened in Moscow on Jan. 30, 1990, it was seen as one of the indicators of the Soviet Union’s fall. Over 30,000 people queued up for a burger on the first day of business, signaling the end of communism.

Shell Stop Buying Russia Oil, McDonald's Restaurants Will Closed In Russia?

“We have no idea when franchises will be able to open back up,” said Mike Roberts, the president of McDonald’s Russia. “It doesn’t look like it’s going to happen anytime soon.” Mr. Kempczinski informed workers and franchisees that it was “extremely difficult to predict” when McDonald’s. The conflict had caused product shortages for Amazon, and the company was monitoring the “humanitarian situation” in the region, according to a statement.

The hamburger chain with restaurants in Chicago had already closed down its roughly 100 locations in Ukraine. McDonald’s is one of a number of firms to suspend operations in Russia, but the Golden Arches stand out as one of the post-Soviet era’s most famous American companies. For More Follow Conceptual Revolutions

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