I have a genuine question that maybe somebody with more economic knowledge can educate me in:
How is continuing the sale in Russia helping Russia? As I understand Russia is gaining money on the sales taxes, etc. but the rest of the earnings will go to the US parent company, which cannot be taxed directly by Russia. If Pepsi backs out, wouldn’t operations just be replaced by a rebranded russian company, where all of the earnings would be under russian “sphere of influence”?
I genuinely do not understand why Pepsi backing out is considered bad for Russia. I thought countries generally prefer national companies over foreign ones.
Your question is basically “why are embargoes effective”
Collectively shunning an economy cripples it, and it’s most effective when widely adopted.
Pepsi should be ashamed of their actions.
Again: The Norwegian Sovereign Wealth Fund still have active investments in Russia.
Where is the outrage for them?
According to this Norwegian publication in an article published January 31st 2023:
the Norwegian oil fund still holds hundreds of millions worth of shares in petroleum companies like Gazprom, Novatek, Bashneft and Lukoil
Even if the value of their investments lower, they still haven’t pulled out any from Russia. The investments could be worth very little, but they still have something invested in Russia.
Norwegian Government on February 28, 2022, ordered the Oil Fund to freeze all investments in Russia and prepare a plan for divesting with the goal of totally exiting the Russian stock market
What’s stopping them?
Making rapid economical changes in this scale will collapse companies and economies.
