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Russia wants to Ban Coca-Cola and Pepsi to retaliate against Western Sanctions

 
 
 
 
 
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09/01/1992 A Coca Cola shop.

The head of Russia’s Party of Pensioners is urging sanctions against the Coca-Cola and PepsiCo claiming the soda giants are major sponsors of anti-Russian politicians in US and that the move would boost domestic producers of soft drinks.

“In support of the president’s and government’s actions regarding the countersanctions we suggest restricting imports of products made by the Coca-Cola and PepsiCo companies that are the main sponsors of respectively the Republican and Democratic parties of the United States, the active supporters of prolonged sanctions against the Russian Federation,” Igor Zotov wrote in a letter to the Russian prime minister, quoted by the Izvestia daily.

Zotov, an MP in the State Duma representing the Fair Russia Party, noted that according to the information received from open sources the US soda is extremely harmful for human health and therefore its imports are very damaging for the health of the Russian nation.

He added that under the ongoing import-replacement program it would be logical to legislatively oblige all soft drink producers selling their products within Russia to use only Russian-made ingredients certified by Russian state agencies. Under this condition, the US soda makers could continue their presence on the Russian markets, Zotov wrote in the letter.

The last suggestion drew bewildered comment from the head of the Union of Soft Drink Producers, Dmitry Petrov, who told Izvestia that Coke and Pepsi sold in Russia were made from Russian water and sugar, but the main flavor came from imported concentrates with a secret composition.

Petrov added that the ban could lead to a deficit of soft drinks in Russia because Coke and Pepsi together sold about 40 percent of products on this market. Another negative effect would be a decrease in tax revenue and a hike in unemployment, the lobbyist said.

06/01/1974 Novorossiisky beer plant. Production line of Pepsi-cola.

According to Russian commercial database SPARK the overall revenue of Coca-Cola’s Russian branch was 67 billion rubles in 2013 and the company paid 404 million rubles in income tax from this sum ($1.2 billion and 7.34 million respectively at current rate). The figures for PepsiCo’s Russian branch are 80 billion and 158 million rubles ($1.45 billion and $2.87 million at current rate). Coca-Cola employs 11,000 workers in Russia and PepsiCo employs 23,000.

PepsiCo entered the Russian markets much earlier than Coca-Cola – in 1971, back in Soviet times. The drinks produced by this company were scarce at first, but gained more popularity as production was increased ahead of the 1980 Moscow Olympics. After the fall of Communism, PepsiCo’s advertising slogan ‘Generation Pepsi’ became so well-known it became eponymous with young people who had not got the taste for the Socialist lifestyle.

Coca-Cola first came to Russia before the 1980 Olympics but only produced and sold its orange drink Fanta until the Perestroika years under Gorbachev in the late-80s.

This is not the first time foreign soda producers have been the target of Russian politicians. Last August the Communist Party asked the government to impose sanctions on tobacco, alcohol and carbonated drinks from all countries that support sanctions against Russia, saying that such move would be in the interests of national security. Before that the Communists had sought an additional tax on sugar-containing drinks quoting concern over national health.

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  • Mokaunu

    The sanctions against the Coca-Cola and Pepsi definitely will boost domestic producers of soft drinks sales. It always better if local government is banning imports and local sale of “Made in USA” products and US brands.

    But, local citizens also should avoid purchasing and consuming “Made in USA” products and US brands. The people must boycott each and every product from US companies, “Made in USA” products and US brands giving a very strong response to US laid sanctions, plus TPP and TTIP as well.

  • monman

    Russia, China and other concerned countries simply double or triple the local taxes to all foreign business operating locally and implement various products inspections, verification and testing fees, plus additional sale tax and other taxes making all foreign product way sky high expensive in local market if banning is not possible.

  • skreamer

    One of the smartest things Russia could do!
    Becoming non dependent on Nazi Murica is a good thing!…..unless of course they start bombing you because of it!
    It is possible for humans to exist without fizzy sugar water!
    I have experimented on myself by not drinking soft drinks for over 20 years now!….unfortunately this has made me normal!….so i don’t fit into society any more. Now i live on the out skirts of the australian country side living off spiralina , wheatgrass juice , and the occasional can of baked beans!
    maybe one day in the future i well start drinking soft drinks again and slip back into society.

    PS…i DARE Russia to do that!……Chickens!…….”makes like a chicken and struts around”

    Says with russian accent……”oh no, what well we do without capitalist consumer fizzy drink”….launch all nuclear weapons at Murica….what else could they do!

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