Ukrainian tragedy
2014 became a tragic year for Ukraine when Russia began its aggression, annexing Crimea and occupying part of Donbas. On February 24, 2022, the brutality of the Kremlin reached a new level with a full-scale military invasion that caused terrible consequences: thousands of civilians died, and millions of people were forced to leave their homes, a humanitarian disaster.
World’s reaction
The war crimes of the Russian army do not go unpunished. The world community condemned this aggression, and many countries introduced tough sanctions against Russia.
After Russia launched a full-scale aggression against Ukraine, a significant number of Western companies publicly announced their intention to stop their activities on the territory of the occupying country. This step was supposed to be a tangible blow to the Russian economy and ordinary Russians’ lives.
However, over time, the situation has changed somewhat. Some companies that have announced their exit from Russia continue to work there, while others have reduced their presence on the Russian market but have not completely stopped their activities.
Companies that still work in Russia
Although many foreign companies stopped operating in Russia after the start of full-scale Russian aggression against Ukraine, according to data collected by the Kyiv School of Economics, more than 1,600 companies remain on the Russian market.
Philip Morris, Leroy Merlin, and PepsiCo are exempt from international sanctions because they do not directly contribute to the Russian military machine. However, the taxes these corporations pay to the Russian treasury can finance Putin’s army.
The influence of international companies on the economy of Russia
Using the example of one company, it is possible to analyze how business in Russia can affect its military potential.
The Coca-Cola Company suspended its business in Russia but began producing “Dobry Cola” and many juices of such brands as “Rich” and “My Family.” In a statement, The company noted that direct official sales of Coca-Cola, Fanta, Sprite, and other brands in Russia are no longer possible, despite the fact that the American company itself has never engaged in them.
Coca-Cola owned a dozen Russian plants. A separate independent company, known in Switzerland as the Coca-Cola Hellenic Bottling Company (HBC), bottled and sold carbonated water. The American Coca-Cola company owns 21.3% of its shares.
To date, the Coca-Cola division in the Russian Federation has increased its profit four times.
Moulton Partners LLC, the Russian division of Coca-Cola HBC Holdings B.V., profit in 2023 amounted to 10.3 billion rubles, or approximately 107 million dollars, four times more than in 2022 (2.3 billion rubles). The company’s reporting explains this. We remind you that Coca-Cola HBC owns 10 factories in Russia for the production of soft drinks and juices.
For example, the Russian Federation spent at least 119.08 million dollars on the attack on Ukraine on the night of May 16, 2023, almost equal to Moulton Partners LLC’s profit. That is, one mass attack that takes dozens of innocent lives of peaceful Ukrainians can be financed by one such company. And there are still many of them in Russia.
Top 10 most prominent international companies still operating in Russia in 2024
American companies maintained their leadership in the ranking of the largest foreign companies in Russia, according to the Russian Forbes, despite the outflow of foreign business from Russia due to its aggressive war against Ukraine:
1. Leroy Merlin. A French company, the owner of retail chains specializing in selling construction materials with headquarters in France, still operates in Russia. She has $4 billion in income from Russia, owned by the Association Familiale Mulliez.
2. JT Group. Japan’s diversified tobacco company has pledged to suspend investment, marketing, and new product launches. The company does not exclude the possibility of suspending production in Russia. However, in Russia, this company is still working, and during the war years, revenues have grown.
3. Philip Morris International. The American multinational tobacco company promised to leave Russia in March 2022, announcing the transfer of ownership. Later, Philip Morris abandoned the idea, and the CEO said that he could not find buyers and that the regulatory constraints were too problematic.
4. PepsiCo. The American multinational food, snack, and beverage corporation announced the suspension of sales of Pepsi-Cola, 7Up, and Mirinda (but replaced them with Evervess and Frustyle). PepsiCo continued to produce other products in Russia.
5. Auchan. The giant French retail chain continues to operate. Thousands of people work in almost 240 Auchan supermarkets in Russia. The chain appears to be doubling down, grabbing the vacated market shares of its former Western suppliers, who now refuse to do business with Russia. At the same time, it fills most of its Russian stores almost exclusively with products of its brands.
6. Nestlé. The world’s largest food producer, the Swiss consumer goods giant, has promised to sell only “necessary” products to Russia. This includes baby formula. However, the media has analyzed and published materials showing that Nestle continues to sell pet food, pralines, chocolate bars, and other non-essential goods.
7. Alibaba. This huge Chinese e-commerce retailer continues to operate in Russia through its AliExpress joint venture. It has strong Russian sales and a freely accessible Russian website that continues to feature new product discounts.
8. Unilever. Like other global consumer corporations, Unilever continues to sell consumer goods to Russia despite numerous consumer boycotts, claiming to provide “necessary” goods.
9. Mondelez. The American multinational confectionery, food, beverage, and snack company has repeatedly promised to turn the Russian business into an “independent” one. However, it shows no tangible signs of progress in exiting this market and continues to operate in Russia despite global boycotts of the corporation.
10. Xiaomi. As widely reported, the Chinese mobile phone giant initially tried to distance itself from Russia after the invasion but appears to have changed its mind very quickly. In addition, Xiaomi has taken the market share of those conscious companies that have severed ties with the Russian Federation, which has allowed it to take a dominant position in the Russian smartphone market.
Why is it necessary to put economic pressure on the aggressor country?
International companies, having stopped their activities in Russia, have a huge influence on the development of Russian aggression in Ukraine. This is because the Russian economy is highly dependent on foreign technologies, goods, and capital.
If the Russian economy collapses, the Kremlin will not be able to finance the war in Ukraine, the production of missiles, and the development of new weapons. That is why exiting the Russian market will be the most profitable way for global companies to support Ukraine.
Ukrainian Resistance calls on all citizens of Ukraine who are currently abroad to be as active as possible. Conveying information to Europe and the USA about the dependence of their businesses on the Russian market and the development of the military-industrial complex of Russia’s aggressor country is also a contribution to victory.
We call for a boycott of all companies that are still in Russia and thus support Putin’s regime and the war against Ukraine and its allies. Only by uniting can we resist the enemy and end the bloody war forever!
