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* Becomes latest Western chain to enter Russia
* Signs franchise deal with Russia's Novikov
MOSCOW, April 23 U.S. doughnut group Krispy Kreme said on Monday it had signed a franchise deal with Russian restaurateur Arkady Novikov to open 40 Moscow outlets as it seeks to expand into the growing Russian consumer space.
Western restaurant chains have flocked to the Russia capital in recent years as rising incomes and consumer spending have increased growth prospects in the emerging market.
Burger King, Wendy's/Arby's and Chilli's have all opened in Russia during the past three years, as has Krispy Kreme rival Dunkin' Donuts.
Many have chosen to pick local franchisees as a way to boost expansion and leverage their brands. McDonald's Corp said earlier this month it would franchise out Russian restaurants for the first time in its 22 year history in the country.
Krispy Kreme's International President Jeff Welch said the firm had picked Novikov for his "strong organisational structure and years of successful restaurant experience in Moscow".
Novikov has an empire of more than 50 restaurants in Moscow, and recently expanded into London for the first time.
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