Boston, MA 08/22/2014 (wallstreetpr) – When McDonald’s Corporation (NYSE:MCD) opened its first outlet in Moscow in the year 1990, no one would have expected it to become the world’s most visited outlet of MCD. It attracted long queues for years until Wednesday when consumer-safety regulator of Japan decided to shut the outlet along with three others.
Why the government has decided to shut MCD:
Nobody is unaware of the ongoing cold-war between America and Russia. The closer of McDonald’s Corporation (NYSE:MCD) in Moscow is the result of this political issue. The consumer safety regulator said that four MCD outlets failed to fulfill the sanitary requirements. They could be harmful to the people who visited them on a regular basis; therefore the only option available was to close them temporarily.
According to market experts, it was more of a political step taken by the Russian government after US and other countries pointed fingers on Russia in recent Ukraine issue. Both the countries have been trying to do several things to prove their dominance over other. According to a senior fellow at the Council on Foreign Relations named Stephen Sestanovich, food inspectors in Russia have been obedient to the government for many years, it might be one such step. He also said that government issued should not intervene in the lives of normal public.
Russian government wants to see the reaction of the public before it closes more outlets; hence, it has initially closed only four McDonald’s Corporation (NYSE:MCD) outlets to be sure. In case people don’t intervene much, then number of such steps can come into the picture. Russia has backed Ukraine and reports claim that it has decided to go further without using western goods than taking away its support from Russia.
Some of the other actions taken by the Russian government after the Ukraine issue included a ban on importing dairy products and meat from European countries and USA. McDonald’s Corporation (NYSE:MCD) representative said that the company was trying to reopen the store as soon as possible.
