Why Burger King has been unable to leave Russia after the Ukraine invasion

American fast food chain Burger King finds itself in a whopper of a problem in Russia, with the company caught in a complex legal web, unable to exit the country after Russian President Vladimir Putin ordered his troops into Ukraine.

For almost a decade, the fast food joint had relied on joint venture partnerships, including a master franchisee, to open and operate outlets at new locations in Europe.

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While Burger King’s strategy helped it expand its European footprint, that same strategy appears to have backfired in Russia.

Although Burger King’s parent company Restaurant Brands International Inc. (RBI) has halted corporate operations in Russia and said on March 17 that it was looking to sell its stake in the joint venture in Russia, Burger King has been unable to close any of its 800+ outlets in the country.

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Unlike competitors McDonald’s, which owned the vast majority of its outlets in Russia, Burger King operates on a joint-venture-style master franchise agreement that allows the firm to profit off its Whopper sales in Russia.

Under the agreement, RBI owns a 15% stake in Burger King Russia and Alexander Kolobov, Burger King’s master franchisee in Russia owns 30%. Additionally, Russian state-owned bank VTB and Kyiv-based private equity and asset management firm Investment Capital Ukraine (ICU) are the other partners.

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RBI claims that it has ordered to closure of its franchises in Russia, and has blamed Kolobov for refusing to shut its restaurants. Kolobov, however, told Reuters that he did not have full operational control or the authority to shut down Burger King restaurants in Russia without the approval of all joint venture partners.

While the situation isn’t completely unresolvable, a solution is expected to take some time.

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“The legal remedies that are available take time, and even when you pursue them, you’d still end up in a Russian courtroom to enforce an order, which is an unlikely prospect at this time,” franchise attorney Lee Plave from Virginia told Reuters, offering an expert insight into the situation.

Thus, as it stands, Burger King remains a popular restaurant in Russia, with almost all of its 800+ outlets operational. Further, with Reuters reporting that there’s no news of negotiations to sell RBI’s stake in Burger King Russia, the fast food joint may well be stuck with its joint venture in the country for several months.