Pepsi, Sandora, Snickers and M&M's listed as international sponsors of the war

The National Agency for the Prevention of Corruption (NAPC) has included two leading food companies of the world, PepsiCo (Lay's, Mirinda, Pepsi, Sandora, 7up, "Chudo", "Slovianochka", "Sadochok", "Sandoryk", etc.) and Mars (Mars, Snickers, Milky Way, Twix, Bounty, M&M's, Whiskas, Pedigree, etc.) in the list of international sponsors of war. They may face serious reputational losses at the global level.

This was shared by NAPC itself. They noted that these companies continue to operate in Russia, despite the statements about:

• reduction of their business;
• cessation of advertising activities;
• production.

According to available information, PepsiCo Lay's chips were found in the food rations of Russian soldiers.

"These companies pay significant taxes to the Russian budget, thus supporting the economy of the aggressor country," the report said.

PepsiCo increased revenues in Russia in the first year of the war

PepsiCo is the fourth largest food and drink company in Russia in terms of net profit, NAPC noted. At the same time, it is emphasized that the company increased its revenues in Russia in the first year of its full-scale invasion of Ukraine.

"The revenue for 2022 rose to 2.59 billion dollars. Net profit raised by 333% to 525 million dollars compared to 2021. More than 115 million dollars were paid to the Russian budget," the agency said.

Despite the company's statement in March 2022 on the cessation of advertising activities and production of drinks in Russia in connection with its full-scale invasion of Ukraine, the production of drinks 7Up and Mirinda under the brands Evervess and Frustyle resumed in August 2022. The production of Pepsi beverages under the Evervess and Favorite brands resumed in March 2023.

"In addition, PepsiCo launched a new brand of lemonade in the country called Russian Gift to replace the previous products. The company continues production and distribution of other goods as well, including chips, snacks and dairy products", NAPC said.

The lack of sincere intentions to leave the Russian market is also indicated by the fact that the company's career page lists more than 580 open vacancies in Russia. "By creating jobs, foreign companies relieve the Kremlin of the burden of unemployment payments and related social problems," the agency stated.

Mars increased its revenues in Russia in 2022

Mars increased its Russian revenues as well. According to the NAPC, in 2022:

• the company's revenue in the Russian Federation increased to 2.45 billion dollars;
• net profit increased by 59% to 377 million dollars;
• more than $93 million were paid to the Russian budget.

"The Russian branch of Mars LLC publishes ads for hiring staff just like PepsiCo. They have more than 100 open vacancies," the report said.

In addition, this company promised to reduce business on the territory of Russia after the start of full-scale aggression. It stated that "any profits from Russian business will be used for humanitarian purposes and the company will not import or export products." Nevertheless, Mars factories continue to operate in Russia.

What being listed as international sponsors of war means

PepsiCo and Mars are not the first international companies to be included in the list. It already includes Philip Morris International, JTI, Alibaba Group Holding Limited, Bacardi, Unilever, Raiffeisen Bank International, Auchan, Metro, Procter&Gamble, Bonduelle, Mondelez, Leroy Merlin, Xiaomi, Geely and many others.

Companies listed as international sponsors of war are entered into the World-Check database. This does not threaten them with closure but the database is used to identify and manage financial, regulatory and reputational risks worldwide.

For example, American Mondelez International faced a boycott in Europe after it was included in the Ukrainian list of international war sponsors. Scandinavian countries joined it most actively. After that, Mondelez even announced its intention to curtail its business in Russia. However, the boycott did not stop, as the company still does not plan to withdraw from the Russian market.

However, all these companies on the list are still operating in Ukraine, as the NAPC has no authority to close international businesses or restrict their work. If sanctions are imposed by the National Security and Defense Council against such businesses, the situation may change.

As reported by OBOZREVATEL, earlier the NAPC sent letters to companies that are on the list of international sponsors of war. The Agency offers the heads of such companies to visit Ukraine and see the consequences of Russian aggression with their own eyes and discuss the withdrawal from Russia.

Only verified information from us on Telegram Obozrevatel and Viber. Do not fall for fakes!