# Exclusive-Kazakh McDonald’s shut outlets temporarily after halting supplies from Russia – sources Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-11-30 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: McDonald's Kazakhstan Forced to Close Due to Supply Meta Description: Find out why McDonald's restaurants in Kazakhstan temporarily closed due to supply issues after cutting ties with Russian companies. URL: https://financedigest.com/exclusive-kazakh-mcdonalds-shut-outlets-temporarily-after-halting-supplies-from-russia-sourceshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-11-29t125359z1lynxmpeias0j1rtroptp4mcdonald-s-corp-kazakhstan-russia-1736814794819-compressed.jpg) By Mariya Gordeyeva ALMATY (Reuters) – McDonald’s licensee in Kazakhstan was forced to temporarily close its restaurants this month after cutting ties with Russian companies and running out of supplies, three sources with knowledge of the situation told Reuters. The case highlights supply issues faced by many Kazakh businesses in the wake of Russia’s invasion of Ukraine and the Western sanctions against Moscow that followed. Neighbouring [Russia is Kazakhstan’s main trading](https://www.financedigest.com/u-s-congress-votes-to-strip-russia-of-most-favored-trade-status-ban-its-oil.html "U.S. Congress votes to strip Russia of ‘most favored’ trade status, ban its oil") partner. In a statement, the U.S.-based company said that its “licensee in Kazakhstan has temporarily closed all of its restaurants due to local [supply issues](https://www.financedigest.com/uks-j-d-wetherspoon-returns-to-profit-as-supply-issues-ease.html "UK’s J D Wetherspoon returns to profit as supply issues ease"). We are working together to resume [operations as quickly](https://www.financedigest.com/how-can-network-operators-monetise-television-quickly-and-effectively.html "How can network operators monetise television quickly and effectively?") as possible. Food Solutions, the Kazakh licensee company, announced the closure on Nov. 17 and cited “local [supply issues.”](https://www.financedigest.com/gsk-expects-us-launch-of-rsv-vaccine-with-no-supply-issues.html "GSK expects US launch of RSV vaccine with no supply issues") It did not respond to requests for comment. Over the past six years, McDonald’s has become a major player on the fast [food market](https://www.financedigest.com/offbeat-thought-process-to-turn-the-tide-in-favor-of-food-hydrocolloids-market.html "Offbeat Thought-Process To Turn The Tide In Favor Of Food Hydrocolloids Market") of Kazakhstan, a Central Asian nation of 20 million people, growing its network to 24 restaurants. The [company had sourced some supplies](https://www.financedigest.com/mitigating-supply-chain-risks-five-critical-tips-financial-services-companies.html "Mitigating supply chain risks – five critical tips for financial services companies") abroad, including beef and chicken. The latter was sourced from Russia’s Miratorg, according to its website. After [Russia invaded Ukraine in what Moscow calls a “special military operation”](https://www.financedigest.com/kfc-franchisees-in-russia-ask-govt-to-halt-sale-of-stores-to-local-operator-ria.html "KFC franchisees in Russia ask govt to halt sale of stores to local operator – RIA"), McDonald’s exited Russia, selling all the restaurants it owned to a local licensee in May. Food Solutions, which belongs to prominent Kazakh businessman Kairat Boranbayev, also started looking for suppliers elsewhere and stopped [buying Russian products](https://www.financedigest.com/over-half-of-britons-say-loyalty-cards-encourage-them-to-buy-a-product-niq.html "Over half of Britons say loyalty cards encourage them to buy a product – NIQ") at some point, a source close to the company said. Another source said it started running out of packaging materials, also imported from Russia, in recent months, and had to shrink its menu. Both sources were not authorised to talk publicly about the matter. The [source said the licensee was now awaiting deliveries](https://www.financedigest.com/airbus-may-delay-some-2023-jet-deliveries-sources.html "Airbus may delay some 2023 jet deliveries: sources") from other suppliers and planned to reopen its restaurants in December. It was unclear where the decision to ditch Russian suppliers originated. Marr Russia, one of the Kazakh company’s Russian suppliers, said it never worked directly with McDonald’s, dealing with its Kazakh [logistics partner](https://www.financedigest.com/openport-partners-with-acudeen-technologies-to-overcome-inefficiencies-within-the-logistics-industry.html "OpenPort Partners with Acudeen Technologies to Overcome Inefficiencies within the Logistics Industry") HAVI instead. It therefore could not [say whether sales](https://www.financedigest.com/ikea-stores-owner-ingka-says-campaigns-help-boost-store-visits-and-sales.html "IKEA stores owner Ingka says campaigns help boost store visits and sales") to Kazakhstan have stopped, it added. HAVI declined to comment. Miratorg said it was a supplier for Vkusno & Tochka, the Russian successor to McDonald’s, and did not directly address the question of Kazakh sales. Cargill Russia, also previously mentioned by Food Solutions among its suppliers, said it had sold the [business that dealt with McDonald’s to Russian](https://www.financedigest.com/pizza-firm-dp-eurasia-considers-divestment-of-russian-business.html "Pizza firm DP Eurasia considers divestment of Russian business") meat producer Cherkizovo, which did not immediately reply to a request for comment. Kazakh Deputy [Prime Minister](https://www.financedigest.com/britains-queen-elizabeth-will-appoint-new-prime-minister-at-balmoral.html "Britain’s Queen Elizabeth will appoint new prime minister at Balmoral") Serik Zhumangarin, asked about McDonald’s at a briefing on Tuesday, said he could not disclose the reasons for its temporary closure and added that the government was helping the company localise its supplies. (Additional reporting by Olzhas Auyezov in Almaty and Hilary Russ in New York; Editing by Alexandra Hudson) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---