• Staff of a former McDonald's restaurant prepare for its reopening under a new brand, Vkusno i Tochka (Tasty and that's it), in Moscow on Sunday. EPA
    Staff of a former McDonald's restaurant prepare for its reopening under a new brand, Vkusno i Tochka (Tasty and that's it), in Moscow on Sunday. EPA
  • Wrapped double cheeseburgers in the new restaurant. Its opening comes after US fast-food company McDonald's pulled out of Russia in May, after closing all its restaurants in the country in March due to the war in Ukraine. AFP
    Wrapped double cheeseburgers in the new restaurant. Its opening comes after US fast-food company McDonald's pulled out of Russia in May, after closing all its restaurants in the country in March due to the war in Ukraine. AFP
  • The first 15 rebranded outlets open in Moscow on Sunday. EPA
    The first 15 rebranded outlets open in Moscow on Sunday. EPA
  • Oleg Paroev, chief executive of Vkusno & tochka, said the company was planning to reopen 200 restaurants in Russia by the end of June and all 850 by the end of the summer. EPA
    Oleg Paroev, chief executive of Vkusno & tochka, said the company was planning to reopen 200 restaurants in Russia by the end of June and all 850 by the end of the summer. EPA
  • The chain will keep its old McDonald's interior, but will expunge any references to its former name, said Mr Paroev, who was appointed Russia's McDonald's chief executive only weeks before Moscow sent tens of thousands of troops into Ukraine on February 24. AFP
    The chain will keep its old McDonald's interior, but will expunge any references to its former name, said Mr Paroev, who was appointed Russia's McDonald's chief executive only weeks before Moscow sent tens of thousands of troops into Ukraine on February 24. AFP
  • Siberian businessman Alexander Govor is the new owner of the outlets. He told Reuters he was striving launch something similar to the famous Big Mac. AFP
    Siberian businessman Alexander Govor is the new owner of the outlets. He told Reuters he was striving launch something similar to the famous Big Mac. AFP
  • 'Our goal is that our guests do not notice a difference either in quality or ambience,' Mr Paroev told a media conference in the restaurant. He said the chain would keep 'affordable prices' but added they would likely rise due to inflation but not higher than its competitors. AFP
    'Our goal is that our guests do not notice a difference either in quality or ambience,' Mr Paroev told a media conference in the restaurant. He said the chain would keep 'affordable prices' but added they would likely rise due to inflation but not higher than its competitors. AFP
  • The rebranding coincided with Russia Day, a holiday marking the country's independence. AFP
    The rebranding coincided with Russia Day, a holiday marking the country's independence. AFP
  • Scores of people queued outside what was formerly McDonald's flagship restaurant in Pushkin Square, central Moscow on Sunday. The outlet sported a new logo - a stylised burger with two fries - plus a slogan reading: 'The name changes, love stays'. Reuters
    Scores of people queued outside what was formerly McDonald's flagship restaurant in Pushkin Square, central Moscow on Sunday. The outlet sported a new logo - a stylised burger with two fries - plus a slogan reading: 'The name changes, love stays'. Reuters
  • Some people said they could not taste the difference between the new and old food. EPA
    Some people said they could not taste the difference between the new and old food. EPA
  • Workers use a crane to dismantle the McDonald's golden arches while removing the logo signage from a drive-through restaurant in the town of Kingisepp, Leningrad. Reuters
    Workers use a crane to dismantle the McDonald's golden arches while removing the logo signage from a drive-through restaurant in the town of Kingisepp, Leningrad. Reuters
  • A worker carries dismantled McDonald's golden arches outside a restaurant in St Petersburg. Reuters
    A worker carries dismantled McDonald's golden arches outside a restaurant in St Petersburg. Reuters
  • Traces of the dismantled signage are seen on the facade of a McDonald's restaurant in St Petersburg. Reuters
    Traces of the dismantled signage are seen on the facade of a McDonald's restaurant in St Petersburg. Reuters

Business

Russia's new McDonald's runs out of French fries until autumn

'Tasty and that's it' has been hit by supply chain problems amid the conflict with Ukraine

Ian Oxborrow
Ian Oxborrow

July 11, 2022

  • English
  • Arabic

Russia's replacement McDonald's restaurants have run out of French fries, its new owners said.

The US fast-food company pulled out of Russia in May, after closing all of its restaurants in the country in March in protest against the war in Ukraine.

A number of them reopened last month under the ownership of Vkusno & tochka, which translates into "Tasty and that's it".

However, after initial big queues, the restaurant chain has run into problems with sourcing potatoes due to supply chain disruption amid the conflict with Ukraine and western sanctions.

French fries will return to the menu in autumn at the start of the new harvest, Russian state news agency Tass reported.

Vkusno & tochka said that country-style potatoes, a thicker version, may also not be available, blaming 2021 as a lean year for potato varieties.

For the past eight years, the company had focused on Russian suppliers, it said. It had become impossible to import from markets that could become temporary suppliers of potatoes for enterprises in Russia, it said.

The Russian Ministry of Agriculture, however, denied there was a potato shortage.

The market is "fully provided" and products of a new crop are already arriving, eliminating the possibility of a shortage, the ministry said in a Telegram statement, which added that it expects an increase in the harvest of potatoes this year.

McDonald's employed 62,000 people in Russia and most were kept on for the new venture led by Siberian businessman Alexander Govor.

The new outlets, sporting a fresh logo, offer burgers and fries, which some said tasted and appeared much the same as they did under the McDonald's branding.

Vkusno & tochka did not have the right to use any mention of McDonald's, Mr Govor told Reuters last month.

"The Big Mac is the story of McDonald's," he said. "We will definitely do something similar. We will try to do something even better so that our visitors and guests like this dish."

The company was planning to reopen 200 restaurants in Russia by the end of June — and all 850 by the end of the summer.

Other US brands to exit Russia include Starbucks, PepsiCo and Coca-Cola, as they sought to comply with sanctions and deal with threats from the Kremlin that foreign-owned assets may be seized.

Should late investors consider cryptocurrencies?

Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.

They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.

“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.

He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.

While you're here
Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

How to help

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How to donate

Send “thenational” to the following numbers or call the hotline on: 0502955999
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10 tips for entry-level job seekers
  • Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
  • Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
  • Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
  • For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
  • Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
  • Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
  • Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
  • Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
  • Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
  • Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.

Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz

FIGHT CARD

Sara El Bakkali v Anisha Kadka (Lightweight, female)
Mohammed Adil Al Debi v Moaz Abdelgawad (Bantamweight)
Amir Boureslan v Mahmoud Zanouny (Welterweight)
Abrorbek Madaminbekov v Mohammed Al Katheeri (Featherweight)
Ibrahem Bilal v Emad Arafa (Super featherweight)
Ahmed Abdolaziz v Imad Essassi (Middleweight)
Milena Martinou v Ilham Bourakkadi (Bantamweight, female)
Noureddine El Agouti v Mohamed Mardi (Welterweight)
Nabil Ouach v Ymad Atrous (Middleweight)
Nouredin Samir v Zainalabid Dadachev (Lightweight)
Marlon Ribeiro v Mehdi Oubahammou (Welterweight)
Brad Stanton v Mohamed El Boukhari (Super welterweight

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

$1,000 award for 1,000 days on madrasa portal

Daily cash awards of $1,000 dollars will sweeten the Madrasa e-learning project by tempting more pupils to an education portal to deepen their understanding of math and sciences.

School children are required to watch an educational video each day and answer a question related to it. They then enter into a raffle draw for the $1,000 prize.

“We are targeting everyone who wants to learn. This will be $1,000 for 1,000 days so there will be a winner every day for 1,000 days,” said Sara Al Nuaimi, project manager of the Madrasa e-learning platform that was launched on Tuesday by the Vice President and Ruler of Dubai, to reach Arab pupils from kindergarten to grade 12 with educational videos.  

“The objective of the Madrasa is to become the number one reference for all Arab students in the world. The 5,000 videos we have online is just the beginning, we have big ambitions. Today in the Arab world there are 50 million students. We want to reach everyone who is willing to learn.”

World Mental Health Day
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Updated: July 11, 2022, 10:05 AM
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