Report: Pepsi still doing business in Russia despite 2022 exit pledge
Although Pepsi announced in March 2022 that it would halt production and sales in Russia, a media report says the company paid Russia $237 million in income tax last year. The finding was published by Ukrainian outlet Kyiv Independent.
Ukrainian media outlet Kyiv Independent reports that food and beverage company Pepsi continues to maintain commercial ties with Russia, despite an earlier pledge to end its operations there.
In March 2022, shortly after Russia's full-scale invasion of Ukraine, the company publicly announced it would suspend production and sales in the Russian market. However, according to the report, Pepsi paid the Russian state $237 million in income tax last year.
This payment suggests that the company's commercial activity in Russia has, in effect, continued — or at least has generated substantial taxable income flowing into the Russian state budget, at a time when the country continues its war against Ukraine.
Context
Following the 2022 invasion, numerous international companies announced they were suspending operations or fully exiting the Russian market, including several food and beverage producers. Such pledges were often seen as part of the broader international pressure on Russia through sanctions and economic isolation.
The Kyiv Independent report suggests that the actual conduct of some international companies does not always match their publicly stated commitments to leave the Russian market.
