Putin's Latest Target: More Than 200 Russian McDonald's

Ronald McDonald appears to be caught in the economic crossfire between Moscow and Washington. More than 200 of McDonald’s restaurants in Russia—or roughly half the country’s total 440 locations—are now under government investigation, according to the company, and a regulator has already closed nine McDonald’s outlets in recent weeks.

The crackdown on one of the most visible U.S.-owned consumer brands in Russia is widely seen as retaliation for sanctions imposed by the U.S. and Europe over Moscow’s role in the Ukraine crisis. Health and safety regulation “is an instrument that’s often used” by the Kremlin to gain leverage in political disputes, says Nonna Crane, a lawyer with Chadbourne & Parke specializing in Russian business issues. For example, Russian health regulators in 2006 banned imports of wine and mineral water from Georgia amid deteriorating relations that led to a military conflict between the two countries.