Hermitage Capital Management CEO Bill Browder argues that “by the time the West is done, we will have Russia completely locked down economically.”
The New York State General Pension Fund, one of the largest public pension funds in the US, is urging McDonald’s, PepsiCo and others to consider suspending or terminating business operations in Russia amid the country’s ongoing encroachment into Ukraine.
| Ticker | Security | past | Change | Change % |
|---|---|---|---|---|
| MKD | McDonald’s Corporation. | 224.29 | -11.47 | -4.87% |
| PKP | PEPSICO INC. | 162.45 | -3.30 | -1.99% |
The fund’s trustee, New York State Comptroller Thomas DiNapoli, warned in a series of letters that companies that continue to operate in Russia and invest in Russian assets “face significant and growing legal, regulatory, operational, legal and personnel risks, as well as reputational risks. ”
“The suspension or termination of McDonald’s operations in Russia will remove various investment risks associated with the Russian market and will play an important role in denouncing Russia’s role in fundamentally undermining the international order that is vital to a strong and healthy global economy,” DiNapoli wrote in his report. a letter addressed to McDonald’s CEO Chris Kempchinski reviewed by FOX Business.
The New York State General Pension Fund, one of the largest public pension funds in the US, is urging McDonald’s PepsiCo and others to consider suspending or terminating business operations in Russia amid the country’s ongoing encroachment into Ukraine. | iStock
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The Auditing Service estimates that the $280 billion fund has about $110.8 million in public equity investments, including direct participation and mixed funds in Russian companies. As of the end of 2021, the New York General Pension Fund held stakes in McDonald’s and PepsiCo worth approximately $410 million and $501 million, respectively, according to 13F’s latest statement.
In total, McDonald’s has 847 restaurants in Russia and 108 establishments in Ukraine. The company owns 84% of offices in Russia and 100% of offices in Ukraine. In 2021, Russia and Ukraine combined accounted for approximately 2% of the company’s system-wide sales, approximately 9% of revenue, and less than 3% of operating income.
“Companies like McDonald’s and PepsiCo, which have a large presence in Russia, need to consider whether doing business in Russia is worth the risk during this extremely volatile time,” DiNapoli said in a statement to FOX Business. “Russia’s unprovoked invasion of Ukraine and its highly unpredictable foreign policy pose a threat to the global economy. We encourage the companies we invest in to conduct a risk analysis and determine what is in the best interests of their companies and their shareholders.”
McDonald’s and PepsiCo did not respond to FOX Business’s requests for comment.
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In addition to McDonald’s and PepsiCo, letters were sent by Estee Lauder, Mondelez International, Fortinet Inc., Kimberly-Clark Corp., Bunge Limited, Coty Inc., Alnylam Pharmaceuticals and Trimble Inc. A spokesperson for the controller’s office told FOX Business that no response had been received from either company as of press time.
| Ticker | Security | past | Change | Change % |
|---|---|---|---|---|
| EL | ESTÉE LAUDER COMPANIES INC. | 264.08 | -21.57 | -7.55% |
| MDLZ | MONDELES INTERNATIONAL INC. | 62.53 | -1.30 | -2.04% |
| FTNT | FORTINET INC. | 291.37 | -44.09 | -13.14% |
| KMB | KIMBERLY-CLARKE CORP. | 127.94 | -1.19 | -0.92% |
| BG | Bunge, OOO | 108.71 | +0.40 | +0.37% |
| KOTY | COTY INC. | 7.35 | -0.77 | -9.48% |
| ALNI | ALNILAM PHARMACEUTICALS | 163.00 | -1.44 | -0.88% |
| TRMB | TRIMBL INC. | 63.54 | -2.94 | -4.42% |
Alnilam does not operate in Russia, and only a very small, insignificant amount of sales of our life-saving drug for an extremely rare genetic disease affecting pediatric patients comes from Russia. These medicines are not subject to sanctions and we plan to continue to ensure patient access,” the company said in a statement to FOX Business.
Elsewhere, Fortinet has ceased operations in Russia and suspended sales, support, and professional services in the country, and Trimble has ceased sales of its products and services in Russia and Belarus.
Mondelez International, Kimberly-Clark Corp., Bunge Limited and Coty Inc. did not respond to FOX Business’s requests for comment.