Although PepsiCo announced it would suspend production and sales in Russia in March 2022, the company remains active in the country and paid $237 million in income tax to the Russian state last year.

PepsiCo, one of the world's largest food and beverage companies, continues to maintain a significant presence in Russia despite its March 2022 announcement to suspend operations following the full-scale invasion of Ukraine. The company remains the fourth-largest foreign business in Russia, operating 19 factories and employing 60,000 workers. Last year, PepsiCo paid $237 million in income tax to the Russian government, contributing to a state budget focused on the war in Ukraine.

Ongoing Operations and Market Presence

While PepsiCo stated it would halt capital investments and advertising in Russia, it continues to sell products labeled as essential, including dairy and baby food. The company also produces beverages under new local names such as Lyubimaya Cola and Evervess Cola. Additionally, original Pepsi products remain available in Russia through parallel imports from third countries like Kazakhstan and Georgia, which occur without the company's direct permission. In 2024, the company opened a new snack factory near Novosibirsk, a project that began in 2020 with an estimated cost of 12 billion rubles, or approximately $155 million. According to the company's annual report, net revenue in Russia increased by 22.9% to $4.77 billion in 2025. Russia currently represents PepsiCo's third-largest market, following the United States and Mexico.

Historical Ties and Corporate Stance

PepsiCo holds deep historical ties to Russia, having been the first American consumer brand produced and sold in the Soviet Union. Former executives, including Donald Kendall and Indra Nooyi, maintained high-level relationships with Russian leadership over several decades. In 2023, Ukraine’s National Agency on Corruption Prevention designated PepsiCo as an international sponsor of the war, a move intended to apply reputational pressure on the firm. Despite this, the company has not indicated plans to exit the market. Reports from B4 Ukraine suggest that in 2023, the firm restricted mentions of the war in its corporate communications. PepsiCo did not respond to requests for comment regarding its ongoing activities in Russia.