Ukraine Adds Sandwich Chain Subway to List of ‘War Sponsors’

(Bloomberg) -- Ukraine’s anti-corruption watchdog placed US sandwich chain Subway on its list of “war sponsors,” saying the company’s more than 500 restaurants operating in Russia help fuel the nation’s economy as it continues its war with Kyiv.

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The Ukrainian National Agency on Corruption Prevention added Subway to a list of companies named by Ukraine as doing business in Russia, including PepsiCo Inc., Philip Morris International Inc. and Procter & Gamble Co., the agency said in a statement.

Subway promotes activities through sanctioned Russian social networks and makes deliveries through Yandex, Russia’s leading search engine, the NACP said. Yandex NV, registered in the Netherlands, has come under intense pressure both in Russia and abroad over its Russian activities.

“Since the full-scale invasion, Subway has not reported any reduction in its operations in Russia,” the Ukrainian agency said, adding that the company still collects royalty payments from its business in Russia. Subway didn’t respond to a query seeking comment about the Ukrainian list.

Ukraine has sought to put pressure on global companies for their activities in Russia since the invasion began in February 2022, though the efforts by the NACP don’t have a direct impact outside of sanctions measures.

Ukrainian authorities have added three Chinese oil companies, Alibaba and Denmark’s Rockwool to the list. They removed Hungarian lender OTP Bank because it made “a number of commitments” regarding its future plans for the Russian market, the NACP said last October.

--With assistance from Daniela Sirtori-Cortina.

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