The franchise holder of Domino's Pizza in Russia has suggested that it will shut down its operations in the country, as it announced its intention to place the business under

bankruptcy.

DP Eurasia, the parent company, stated that it would cease efforts to sell the pizza chain's outlets in Russia due to the increasingly difficult operating environment.

Numerous Western companies have severed their connections with Russia following the Ukrainian invasion and the subsequent imposition of economic sanctions.

However, some entities, including Domino's, have faced criticism for not exiting the Russian market.

DP Eurasia operates 171 Domino's Pizza establishments in Russia, possessing ownership of 68 of them while the remaining 103 are operated as franchises by local businesses.

In a statement released on the London Stock Exchange on Monday, DP Eurasia revealed that it had chosen to have its Russian subsidiary, DP Russia, file for bankruptcy rather than pursuing a buyer.

"In light of the progressively challenging conditions, DP Russia's immediate holding company is now compelled to undertake this step, which will lead to the discontinuation of DP Russia's attempted sale as a viable entity and inevitably, the company's presence within Russia," the statement explained.

Previously, the company had been "assessing its presence" in Russia following the imposition of sanctions.

Aside from owning Domino's franchises in Russia, DP Eurasia holds the master franchise rights for the brand in Turkey, Russia, Azerbaijan, and Georgia.

The Russian economy has been targeted with a series of sanctions since the outbreak of the Ukrainian conflict in February 2022.

Numerous well-known companies opted to close their operations shortly after the invasion. Moreover, significant pressure was exerted on major brands like McDonald's and Coca-Cola to take similar actions.

Entities that continued business operations also encountered persistent criticism.

Unilever, for instance, defended its choice to remain operational in Russia. The manufacturer of Dove soap and Cornetto ice cream argued that the situation was "complex" since the Russian state would take over its operations if it ceased them.

Reports suggest that Unilever was contributing approximately £579 million to the Russian economy on an annual basis.

Domino's Pizza Inc., the American multinational corporation and master franchisor, informed the BBC that its subsidiary firms had halted "all support for the Russian market" early in 2022. Photo by Aero777, Wikimedia commons.