Russia lost McDonald for good after 30 years
The move comes after it temporarily closed its 850 outlets in March.
The fast-food giant said it decided because of the “humanitarian crisis” and “unpredictable operating environment” caused by the Ukraine war.
The opening of McDonald’s first restaurant in Moscow in 1990 symbolised a thaw in Cold War tensions.
A year later, the Soviet Union collapsed, and Russia opened up its economy to companies from the West. More than three decades later, however, it is one of a growing number of corporations pulling out.
"This is a complicated issue without precedent and with profound consequences," said McDonald's chief executive Chris Kempczinski in a message to staff and suppliers.
"Some might argue that providing access to food and employing tens of thousands of ordinary citizens is surely the right thing to do," he added.
"But it is impossible to ignore the humanitarian crisis caused by the war in Ukraine. And it is impossible to imagine the Golden Arches representing the same hope and promise that led us to enter the Russian market 32 years ago."
McDonald's said it would sell all its sites to a local buyer and begin the process of "de-arching" the restaurants, which involves removing its name, branding and menu. It will retain its trademarks in Russia.
The chain said its priorities included ensuring its 62,000 employees in Russia continued to be paid until any sale was completed and that they had "future employment with any potential buyer".
McDonald's said it would write off a charge of up to $1.4bn (£1.1bn) to cover the exit from its investment.
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