Subway has been added to Ukraine’s list of “International Sponsors of the War.” The Ukrainian government claims that Subway’s strong presence in Russia aids the Russian invasion. With over 500 locations in the so-called “aggressor’s market,” the Ukrainian National Agency for Corruption Prevention (NAZK) claimed that Subway was providing financial support to the war effort.
Russian food delivery services, advertising on social networks that have been sanctioned, and Subway’s tax payments to the Russian government were all points of criticism from NAZK. In an effort to put pressure on firms doing business in Russia, Subway is the 49th company to be included to the International Sponsors of the War list. Among the notable corporations included are Nestle, PepsiCo, Bacardi, Unilever, Mars Inc., Philip Morris International, and Pepsi. A “soft sanction” with no teeth, this list serves no official purpose.
Controversy surrounds Subway, the third-largest European sandwich business, as it continues operations in Russia despite the ongoing crisis. The company’s 550 locations in 122 Russian cities are a proud accomplishment for the Milford, Connecticut-based business. There are claims that it helped prop up Russia’s economy, which led to accusations that it funded the conflict in Ukraine. There was a lot of push for Subway to go out in Russia in 2022, and now they’re being criticized for not reducing their position after the invasion. To persuade MNCs to reevaluate their involvement in the Russian market, the Ukrainian government compiled the International Sponsors of the War list in 2022.
In spite of the claims, Subway stands by its support for Ukraine. The business has stated its intention to donate the proceeds from its Russian activities to charity causes, such as feeding refugees. As an example of its emphasis on the franchise concept, Subway claims that each of its Russian franchises is privately held and run. The business maintains that it does not have any say in the day-to-day operations of these independent franchisees’ eateries.
The Ukrainian government is still using the International Sponsors of the War list to get companies to reconsider their ties to Russia, even though the war between the two countries is far from ending. The list serves as a tool to put non-binding pressure on firms and encourage them to reevaluate their involvement in the region, as about 1,600 foreign companies continue to do business in Russia.
