Ukraine Adds PepsiCo and Mars to the List of War Sponsors

The National Anti-Corruption Bureau of Ukraine has included two leading food corporations, PepsiCo and Mars, in the list of international sponsors of the war. Despite their claims of scaling down operations, halting advertising activities, and production of their goods, these companies continue to operate in Russia, paying substantial taxes to the Russian budget, thereby supporting the aggressor country's economy.

This information was provided by the Bureau's press service.

The first company, PepsiCo, manufactures soft drinks, juices, chips, snacks, dairy products, and other food items under major brands such as Chester's, Chipsy, Lay's, Mirinda, Pasta Roni, Pepsi, Propel, Sandora, 7up, Simba, Snack a Jacks, Sonric's, Tropicana, "Agusha," "Chudo," "Slovyanochka," "Sadochok," "Sandorik," "Mashenka," and more.

PepsiCo has been operating in Russia since 1974, with 19 plants, around 20,000 employees, and 40,000 agricultural workers. In terms of net profit, PepsiCo is the fourth-largest company in the beverage and food sector in Russia.

PepsiCo increased its revenue in Russia in the first year of the full-scale invasion. In 2022, TOV "PepsiCo Holdings" reported revenues of $2.59 billion (or 176.5 billion rubles), with a net profit increasing by 333% to $525 million compared to 2021. Over $115 million (or 8.29 billion rubles) in taxes were paid to the Russian budget.

In March 2022, the company announced the cessation of advertising activities and the production of beverages in Russia due to the full-scale invasion of Ukraine. However, in August 2022, the production of "7Up" and "Mirinda" beverages resumed under the "Evervess" and "Frustyle" brands, and in March 2023, the production of "Pepsi" drinks restarted. The company also continues to manufacture and distribute other products such as chips, snacks, and dairy items. According to reports, Lay's chips from PepsiCo were found in the rations of Russian soldiers.

The fact that there are no sincere intentions to leave the Russian market is also evident from the over 580 job openings listed on the company's career page in Russia. Foreign companies, by creating job opportunities, alleviate the burden on the Kremlin in terms of unemployment benefits and related social issues.

The second company, Mars, also produces food products and is known for its chocolate bars but also manufactures pet food, chewing gum, beverages, fast food, and canned sauces. Major brands include Mars, Snickers, Milky Way, Twix, Bounty, M&M's, Whiskas, Pedigree, Uncle Ben's, and a series of Wrigley brands.

Mars has been operating in Russia for over 30 years, investing $2.5 billion in the aggressor country's economy, creating over 6,000 jobs, and having 10 factories within Russian territory.

The company promised to scale down its business operations in Russia after the onset of full-scale aggression.

"Any profit from our Russian business will be used for humanitarian purposes. The company will not import or export products," stated their official announcement.

However, Mars' factories in Russia continue to operate with increased revenues in 2022 compared to 2021. In 2022, "Mars" LLC reported revenues of $2.45 billion (or 176.5 billion rubles), with a net profit increasing by 59% to $377 million (or 27.2 billion rubles). Over $93 million (or 6.76 billion rubles) in taxes were paid to the Russian budget.

On the job search website of the Russian subsidiary of Mars, as with PepsiCo, over 100 current job openings are listed. Foreign companies, by creating job opportunities, alleviate the burden on the Kremlin in terms of unemployment benefits and related social issues.

As reported by The Gaze, the term "War Sponsors" refers to a list compiled by Ukraine's National Anti-Corruption Bureau and published on the "War and Sanctions" portal. Companies cooperating with the aggressor and included in the "War Sponsors" registry are also added to the world's largest risk assessment database, World-Check, used by banks and insurance companies.

The "War Sponsors" list includes the Austrian banking group Raiffeisen, British consumer goods company Unilever, Hungarian OTP Bank, French retail giant Auchan, and several other well-known companies that continue to operate in Russia.