PepsiCo, Mars and Mondelez make record profits in Russia 

Bloomberg reported the information.

According to documents filed with the Russian tax authorities, Mondelez Rus', which sells Jubilee biscuits and Alpen Gold chocolate, increased its sales by 38% to RUB 92 billion (USD 1.1 billion) under local accounting standards. Chocolate maker Cadbury more than doubled its total profit compared to 2021. According to Mondelez in their annual report, profitability increased due to pricing, volume growth, and the suspension of advertising. Last year, 4% of Mondelez's consolidated revenue came from Russia.

Mars, which entered Russia in the early 90s, recorded a 14% increase in sales to RUB 177 billion last year, while profits rose 58% to RUB 27 billion. PepsiCo's revenue in Russia grew by 16%, and profits quadrupled. The carbonated beverage maker said that operations in Russia will generate 5% of consolidated net intrusion in 2022, up from 4% a year earlier.

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According to information from Mondelez and Pepsi, there are restrictions on the transfer of funds to and from Russia. It is expected that large Russian companies will be taxed on windfall profits in the amount of 10% of the difference in profits between 2021-2022 and 2018-2019.

The American companies Mondelez, Mars, and Pepsi have remained in Russia because they are not subject to sanctions. They said they would sell only "essential" products. PepsiCo CEO Ramon Laguarta said the company was halting sales of international brands such as 7Up and Pepsi.

The remaining companies could benefit from competitors' withdrawal from the market. Consumer demand is supported by a tight labor market and moderate inflation. The Bank of Russia forecasts that the economy will grow by 2% this year.

However, Mondelez's unprecedented sales growth is beginning to taper off. In June, Mondelez announced that it had reduced its operations in Russia. Mars is also minimizing its activities in Russia, and PepsiCo declined to comment.

They reportedly face boycotts. Pernod Ricard stopped exporting all spirits to Russia after facing boycott calls in Sweden. British ice cream for the soap conglomerate Unilever Plc was targeted by the initiative group Ukrainian Solidarity Project.

Unilever's revenue in Russia fell by 1% to RUB 85 billion, but last year's profit almost doubled to RUB 9 billion. The company said that the Russian division is separate from the rest of the business, and profits do not leave the country. A company spokesperson said that actions aimed at reducing business in Russia led to a decline in sales by about 15% last year. Companies with assets in Russia need permission from local authorities to sell them. They face a mandatory contribution to the state budget.

NACP’s list of war sponsors

As stated on the National Agency on Corruption Prevention (NACP) website, the purpose of being included in the list of international war sponsors is to reduce Russia's resources for waging war through non-sanctioned instruments (without involving the resources of allied countries). The list also serves to draw attention in the global media space to the company declared an "international war sponsor" and to the war in general. 

To be excluded from the register, a company must: 

• withdraw from the Russian market or cease doing business with Russia; 
• or provide a realistic, achievable in the short term exit plan, together with written and public guarantees to ensure its implementation by a specified date;
• or cease all business operations in Russia, leaving only a formal presence there due to the difficulties of exit.

The NACP added 24,000 people to the list of sponsors and those involved in Russia's war in Ukraine.

On June 16, the NACP removed the first company from the list of international sponsors of the war, namely Irish Peninsula Petroleum Limited. 

As of June 16, the NACP had added 29 companies to the list of international sponsors of the war. Among them are, in particular, Chinese Xiaomi and Great Wall, Hungarian OTP Bank, Austrian Raiffeisen Bank International, Bonduelle, French chain Auchan, German Metro and other companies.

On June 23, the NACP added Chinese car manufacturer Geely to the list of international sponsors of the war.

 On July 3, 2023  The National Agency on Corruption Prevention (NACP) has added the British company Unilever to the list of international sponsors of the war

Last year, German companies transferred more money to the Russian budget than firms from any other EU country – only the United States is ahead

Foreign companies still contribute to funding Putin's war on Ukraine.  According to research, just 17% of Western companies that had local Russian subsidiaries before the invasion of Ukraine, had left Russia