As Russia Says Goodbye to Big Macs, Resale Prices of Last Products Skyrocket

These days in Russia, if you want to get a Big Mac, you’ll need to go on Avito and pay up to roughly $36. The absolutely ridiculous pricing, of course, is a result of the decision by McDonald’s (NYSE: MCD) to temporarily shutter its operations within the country in objection to the invasion of Ukraine.

The fast-food giant announced last week in a memo from CEO Chris Kempczinski that it will be temporarily closing its 850 stores and pausing its operations in Russia as the McDonald’s System joins the world “in condemning aggression and violence and praying for peace.”

Just like at the opening of the first McDonald’s in Russia 32 years ago, people flocked to stores for the flagship Big Mac. This time they lined up for one last Big Mac for an indefinite period of time.

Some patrons took advantage and stocked up on their favorites, while many have decided to resell menu items and packaging on Avito, Russia’s version of Craigslist.

The prices for the listings posted on the site vary greatly. One St. Petersburg seller posted combo sets for a whopping $225, plus an extra $9 for each piece of packaging. According to The Economist’s Big Mac Index, a Big Mac in Russia normally costs ₽135 or $1.22.

Among global companies suspending their operations in Russia, McDonald’s is the one with the most number of stores and employees. But according to Kempczinski’s memo, their 62,000 employees will continue to receive their salaries.

Russia’s workaround

In a report from Washington Post, Russia issued a decree that removes patent protections for companies linked to countries deemed hostile to Russia, effectively legalizing patent theft, and creating an opportunity to reopen operations for global giants like McDonald’s without the company’s permission. Of course, this does nothing for the supply chains that are likely to fall apart in such situations and may limit the true-to-form reproduction of such products.

This move will likely impact Russia’s relationship with Western investors long after any de-escalation of the war in Ukraine.


Information for this briefing was found via Twitter, Avito, Reddit, and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

Russia Classifies Import/Export Data Publications to Prevent Speculation

Russia’s customs service has decided to temporarily stop releasing import and export data in an...

Friday, April 22, 2022, 04:26:00 PM

Russian Opposition Leader Alexei Navalny Dead In Prison, Team Claims It Was Murder

Alexei Navalny, a Russian opposition activist and frequent challenger to Vladimir Putin, has died according...

Friday, February 16, 2024, 07:52:19 AM

Russia Extends Crude Export Cuts Through to September

Earlier this year Russia boldly pledged to slice its overseas supplies by half a million...

Thursday, August 3, 2023, 04:29:00 PM

Who Will End Up Paying For Germany’s Gas Once Russian Taps Close?

Underlying Germany’s draft law that would essentially allow the government to bail out ailing energy...

Thursday, July 7, 2022, 10:06:00 AM

Did Vladimir Putin Suffer A Cardiac Arrest?

Russian President Vladimir Putin reportedly suffered a “cardiac arrest” on Sunday evening, as a statement...

Tuesday, October 24, 2023, 02:53:00 PM