Brands, Highest Value Businesses Pull Out From Russian Market

PepsiCo Inc and Coca-Cola said on Tuesday they are suspending sales of their sodas in Russia, to be the latest addition to a long list of high-profile Western consumer brands to taper, suspend or curtail their operations in Russia in the aftermath pf following the invasion of Ukraine.

Coca-Cola said its business in Russia and Ukraine contributed about 1% to 2% of the company’s net operating revenue in 2021. PepsiCo, whose colas were one of the few Western products allowed in the Soviet Union prior to its collapse, said it would continue to sell daily essentials, such as milk and other dairy offerings, baby formula and baby food, in Russia.”

McDonald’s said earlier on Tuesday that it would temporarily close its 850 restaurants in the country. However, the list goes on, from Disney, Carlsberg, Airbnb, Adidas, Budvar, Volvo. VW, Toyota, Renault, Mercedes-Benz, Harley-Davidson, Ford and Ferrari, have all come forward in one way or another, suspending business activity with the Russian market.

Starbucks is also pulling out by suspending all business activity in Russia, and its licensee will temporarily shutter locations there. The coffee chain has about 130 outlets in Russia and Ukraine, according to Bank of America Securities.

Then, in the energy sector, which is a major blow for the elites of Russia who are immersed in such business dealings with the likes of Gazprom, Shell, Exxon, Equinor and BP are all abandoning JVs with Russia’s oil and gas market.