PepsiCo Inc. is reportedly seeking an exit from the Russian market, with a possible sale of its entire operations in the warmongering country.
According to a Wall Street Journal report cited unnamed “people familiar with the matter,” the company was “exploring options for its business in Russia, including writing off the value of the unit.” Revenue from PepsiCo”™s Russian unit was $3.4 billion in 2021 but writing off the unit would not have a negative effect on the company because, according to the Journal’s sourcing, “it contributes little to PepsiCo”™s earnings.”
Since Russia”™s invasion of Ukraine, many major U.S. corporations have announced the suspension of operations in the Russian market. PepsiCo had come under criticism for remaining in Russia.
PepsiCo generates 4.4% of its revenue, or $3.4 billion, coming from that market. The company has been among the firms being pressured by New York State Comptroller Thomas DiNapoli to rethink their Russian business. DiNapoli controls the state”™s $280 billion pension funds, which includes PepsiCo shares, and said it would be in the company”™s best interests to “address various investment risks associated with the Russian market.”
