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Wednesday, October 5, 2022

Russia-Ukraine Crisis: Coca-Cola, Pepsi Face Boycotts over Continued Russia Operations

Nike and IKEA both closed stores in Russia on Thursday, as trade restrictions and supply difficulties added to political pressure on corporations to quit

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Transcontinental Times Staff
Transcontinental Times Staffhttps://www.transcontinentaltimes.com
Submissions filed under "Staff" are acredited to their authors at the bottom of the article if any.

RUSSIA: Major worldwide brands such as McDonald’s Corp, Coca-Cola, PepsiCo Inc, and Estee Lauder Cos Inc should consider suspending business in Russia, according to the reports. Coca-Cola and Pepsi are facing major backlash from people around the world due to their continued operations in Russia.

Ukraine’s official Twitter account took a dig on Pepsi in a tweet.

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Other companies that received the letter included Mondelez International Inc, Fortinet Inc, Kimberly-Clark Corp, Bunge Ltd, Coty Inc, Alnylam Pharmaceuticals Inc, and Trimble Inc.

As a result of Russia’s invasion of Ukraine, political pressure is mounting on businesses to quit doing business there, and sanctions are making some activities harder. Some major corporations, such as Nike and IKEA, have already stated that they will cease operations.

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New York State Comptroller Thomas DiNapoli’s letters urged companies to review their operations in Russia because they face “significant and growing legal, compliance, operational, human rights and personnel, and reputational risks,” wrote DiNapoli, who oversees the state’s roughly $280 billion pension fund, which owns shares in the companies.

Stopping or ending operations in Russia, according to the letter, “would address various investment risks associated with the Russian market and play an important role in condemning Russia’s role in fundamentally undermining the international order, which is critical to a strong and healthy global economy.”

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Nike and IKEA both closed stores in Russia on Thursday, as trade restrictions and supply difficulties added to political pressure on corporations to quit doing business there because of Russia’s invasion of Ukraine.

As more corporations, from vodka producer Diageo to Toyota, ceased business in Russia, French bank Societe Generale said it was seeking to reduce its risks in the country, fearing a tit-for-tat response by Moscow to Western sanctions.

Apple, Ford, and Shell have all criticised Russia’s attack, but some of the Thursday pronouncements were more practical, focusing on supply and sanctions as shipping routes block and states ban exports to Russia.

Also Read: Russia-Ukraine Crisis: “Whole World is Against You”, Ukrainian Envoy Tells Putin

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