Coca-Cola, PepsiCo, Heineken join Russia exodus

Dutch brewer Heineken and US soft drinks giants Coca-Cola and PepsiCo have become the latest Western firms to halt operations in Russia over Moscow’s war in Ukraine.

Russia’s attack on its neighbor has drawn unprecedented sanctions and international condemnation that has piled up as the military offensive has taken a growing toll on Ukraine.

“Our hearts are with the people who are enduring unconscionable effects from these tragic events in Ukraine,” Coca-Cola said in a statement announcing that it was “suspending its business in Russia.”

Companies from Apple to Visa have already announced curtailed or suspended operations in Russia since the attack began last month.

“Given the horrific events occurring in Ukraine we are announcing the suspension of the sale of Pepsi-Cola, and our global beverage brands in Russia, including 7Up and Mirinda,” PepsiCo said in a statement.

PepsiCo, however, added that it would continue to offer products like milk and baby food.

“By continuing to operate, we will also continue to support the livelihoods of our 20,000 Russian associates and the 40,000 Russian agricultural workers in our supply chain,” PepsiCo CEO Ramon Laguarta said.

Heineken, the world’s second-biggest beer company said Wednesday it was stopping the production, advertising and sale of its namesake brand in Russia “in response to the continued escalation of the war”.

Heineken had already suspended new investments and exports to Russia last week.

“We are shocked and saddened to watch the tragedy in Ukraine unfold,” Heineken chief executive Dolf van den Brink said in a statement.

“The Russian government’s war against Ukraine is an unprovoked and completely unjustified attack,” he said.

Heineken employs 1,800 people in Russia and says it is the third-biggest brewer in the country, where it makes the Zhigulevskoe and Oxota brands for the local market.

The brewer said it would take “immediate steps to ring-fence” its Russian business from the rest of its global operations “to stop the flow of monies, royalties and dividends out of Russia.”

“Heineken will no longer accept any net financial benefit derived from our Russian operations,” it said.

About 300 companies have announced their withdrawal from Russia since it invaded neighbouring Ukraine, according to Yale University researchers.

McDonald’s and Starbucks on Tuesday bowed to public pressure and suspended their operations in Russia.

Several of these companies, symbols of American cultural influence in the world, have been the subject of boycott calls on social media as investors have also begun to ask questions about their presence.

“We cannot ignore the needless human suffering unfolding in Ukraine,” the fast-food giant said, announcing the temporary closure all 850 restaurants in Russia, where it employs 62,000 people.

Starbucks, which has 130 Kuwaiti conglomerate-run coffee shops in Russia, said all operations, including product shipments, will be suspended.