After the war in Ukraine forced it to quit the country, McDonald's found a local buyer for its Russian business.
The fast food giant said that Alexander Govor, who currently operates 25 McDonald's restaurants in Siberia, will take on the firm's 850 restaurants and staff and operate them under a new brand.
It warned investors that it would take more than $1 billion to exit.
McDonald's had been in Russia for more than 30 years.
The opening of its first restaurant in Moscow in 1990 was a sign of a thaw in Cold War tensions.
Russia opened its economy to companies from the West after the collapse of the Soviet Union. More than three decades later, it is one of a growing number of corporations pulling out as the war in Ukraine and western sanctions make it difficult to operate.
McDonald's said it expected the deal to close in the coming weeks.
Mr Govor is a licensee of Mcdonald's. He is a board member of a company that owns a hotel and clinics in Siberia.
Denis Manturov, Russia's Industry and Trade Minister, said the deal was the result of a long and difficult negotiation process and the government would provide Mr Govor with all the necessary assistance to set up operations.
Mr Govor will pay the salaries of corporate staff in Russia until the deal is completed, and McDonald's staff in Russia will be retained for at least two years with their existing pay.
McDonald's will retain its trademark in the country, but the restaurants will be stripped of their menu, logo and other branding.
Chris Kempczinski called the decision extremely difficult when he announced plans for the sale earlier this week.
We have a commitment to our global community and must remain steadfast in our values. We can no longer keep the arches shining because of our commitment to our values.
McDonald's suspended operations in Russia in March due to the humanitarian crisis and an unpredictable operating environment.
Russia and Ukraine accounted for 9% of the company's revenue last year.
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