Ukraine has added the US sandwich chain Subway to its list of ‘war sponsors,’ citing the company’s more than 500 restaurants operating in Russia as contributing to the nation’s economy amid the ongoing conflict with Kyiv.
The Ukrainian National Agency on Corruption Prevention included Subway in a list of companies doing business in Russia, which also features PepsiCo Inc., Philip Morris International Inc., and Procter & Gamble Co., according to a statement from the agency.
The NACP stated that Subway promotes activities through sanctioned Russian social networks and utilizes Yandex, Russia’s leading search engine, for deliveries. It highlighted that Subway has not scaled back its operations in Russia since the invasion and continues to collect royalty payments from its business there. The company did not respond to a request for comment regarding its inclusion on the Ukrainian list.
Ukrainian authorities have been exerting pressure on global companies for their activities in Russia since the invasion in February 2022. However, the efforts by the NACP do not directly impact sanctions measures outside of Ukraine. In addition to Subway, three Chinese oil companies, Alibaba, and Denmark’s Rockwool have been added to the list, while Hungarian lender OTP Bank was removed due to commitments regarding its future plans for the Russian market.
This move by Ukraine reflects the ongoing geopolitical tensions and the efforts to hold companies accountable for their business operations in conflict-affected regions. It also underscores the complexities faced by multinational corporations operating in politically sensitive environments.
As the situation continues to evolve, the actions taken by Ukrainian authorities and the responses from the implicated companies will be closely monitored for their potential impact on international business and diplomatic relations.
