Political pressure on McDonald's, Pepsi and others to exit Russia

President and CEO Dan Schulman said the company 'stands with the international community in condemning Russia’s violent military aggression in Ukraine'

Political pressure is building for companies to halt business in Russia because of its invasion of Ukraine.: File photo

Reuters   |   New York   |    06.03.22  : Major global brands, including McDonald’s Corp, PepsiCo Inc and the Estee Lauder Cos Inc, should consider pausing their operations in Russia, New York state’s pension fund chief wrote in letters to several companies on Friday.

Other companies that received the letter were Mondelez International Inc, Fortinet Inc, Kimberly-Clark Corp, Bunge Ltd, Coty Inc, Alnylam Pharmaceuticals Inc  and Trimble Inc.

None of the companies immediately replied to a request for comment.

Political pressure is building for companies to halt business in Russia because of its invasion of Ukraine, and sanctions are making some operations difficult. Some big companies have already said they will stop, including sneaker maker Nike and home furnishings firm IKEA.

The letters from New York State Comptroller Thomas DiNapoli urged companies to review their businesses in Russia because they face “significant and growing legal, compliance, operational, human rights and personnel, and reputational risks”, wrote DiNapoli, who oversees the state’s roughly $280 billion pension fund, which owns shares of the companies.

Zara closes shops

Spanish fashion retailer Inditex has halted trading in Russia, closing its 502 shops and stopping online sales.

The Zara owner is following some of the biggest western brands which have suspended operations in Russia, including its main rival H&M.

Inditex said it would give its workforce of more than 9,000 people a special support plan.

PayPal service

Payments company PayPal Holdings Inc shut down its services early on Saturday in Russia, citing “the current circumstances” joining many financial and tech companies in suspending operations there after the invasion of Ukraine.

President and CEO Dan Schulman said the company “stands with the international community in condemning Russia’s violent military aggression in Ukraine.”