The owner of Domino’s Pizza in Russia is considering pulling out of the country – ten months after Vladimir Putin invaded Ukraine.
DP Eurasia, which also owns the chain’s franchise in Turkey, Georgia and Azerbaijan, is ‘evaluating its presence’.
The London-listed firm is looking at the impact sanctions are having on its business. It is the latest firm considering pulling out since the war on Ukraine began.
Still in Russia: Domino’s Pizza owner DP Eurasia iDP Eurasia is looking at the impact sanctions are having on its Russia business
Global businesses have incurred huge costs by shutting up shop in Russia. McDonald’s, for example, took a hit of up to £1.2billion.
In March, DP cut all investment in Russia, where has 172 stores, leaving its operation to sustain itself. It also stopped taking royalties from the Russian stores, as did Domino’s overall owners in the US.
But DP drew criticism for keeping the restaurants open, citing a desire to protect its staff and customers, and was accused of ‘delivering very late’.
Mark Dixon of the Moral Rating Agency, said: ‘It has waited ten months after the invasion to change its mind and say it wants to leave.
‘This leaves a bad taste in the mouth. Plus, there is no assurance it will actually complete the deal.’
This month Tory MP Mark Pritchard criticised DP, Unilever and HSBC for still doing business in Russia.
Pritchard asked Exchequer Secretary James Cartlidge in Parliament: ‘There is no doubt that the UK has led the Ukraine war effort with the US, and there is no doubt that the UK has led the international sanctions regime, but this urgent question is about UK companies.
Does the minister share my concern that DP Eurasia is selling pizzas in Russia, Unilever is selling Cornetto ice creams in Russia, and HSBC is still servicing Russian corporate clients? Does he think that is acceptable?’
DP’s Russian stores make around a quarter of its sales. Yesterday it said work on a sale is ongoing, but there was ‘no certainty’ of a deal. It will seek to avoid doing a deal with a sanctioned individual.
A sale could result in Domino’s stores remaining open in Russia – under a different owner. DP shares were flat yesterday, closing worth 54p. They are down 37 per cent this year.
- Ikea which shut up shop in Russia in March, is close to finding a buyer for its factories and aims to strike a deal this year. It said the sale was ‘proceeding according to plan’.
