Coca-Cola and PepsiCo suspend soda sales in Russia, joining KPMG and others

The sanctions from the West against Russia are forcing global companies to reconsider the nature of their business with Russian clients.

Following the announcement by Visa and MasterCard that they will cease operations in Russia, various Russian banks began exploring other ways to facilitate transactions.

Work for Russian clients has been halted at McKinsey, Boston Consulting Group, and Bain & Company, while mid-tier accountant Grant Thornton has split from its Russian unit.

Following Russia's invasion of Ukraine, KPMG has joined Netflix and PricewaterhouseCoopers (PwC) in suspending business in Russia and Belarus.

The Coca-Cola Company and PepsiCo have announced that they will cease operations in Russia, joining other major American brands in boycotting the country in the wake of its invasion of Ukraine.

Both Coca-Cola and PepsiCo issued press releases announcing this.

PepsiCo, whose colas were among the few Western products permitted in the Soviet Union before its demise, said it will continue to sell everyday necessities in Russia, including milk and other dairy products, baby formula, and baby food.

Coca-business Cola's in Russia and Ukraine is expected to contribute 1% to 2% of the company's net operating revenue in 2021, according to the company.

What they have to say

"Our hearts go out to the people of Ukraine who are suffering unspeakable consequences as a result of these awful events," Coca-Cola said in a statement on Tuesday. "As events unfold, we will continue to watch and assess the situation."

Coca-Cola, which has bottling plants in Russia, did not disclose any other information regarding the move.

PepsiCo stated it would continue "to provide our other products in Russia, including everyday needs such as milk and other dairy items, baby formula and baby food," after Coke's plans were made public.

PepsiCo employees were sent a message signed by CEO Ramon Laguarta that remembered the company's historical ties to Russia, including how it "entered the market at the height of the Cold War and helped develop common ground between the US and the Soviet Union."

"However, given the horrible events in Ukraine, we are announcing the suspension of Pepsi-Cola and our global beverage brands in Russia, including 7Up and Mirinda," Pepsi-Cola said.