Hilary Russ

NEW YORK, (Reuters) – The New York State pension fund chief said Thursday that McDonald’s Corp. (NYSE:), PepsiCo. (NASDAQ::) and others with a significant presence in Russia should “consider whether doing business there is worth taking the risks during these extraordinarily volatile times.”

Companies are being pressured by political forces to stop doing business with Russia due to its invasion of Ukraine. Sneaker manufacturer Nike has already stated that they would do this. Nike (NYSE:) IKEA, a home furnishing company.

New York State Comptroller Thomas DiNapoli who manages the state’s public pension fund said, “Russia’s unprovoked invasion of Ukraine and its highly uncertain foreign policy are a danger to the global economy.”

He stated that he encouraged companies to conduct a risk analysis, and then determine what would be in the company’s best interests and those of their shareholders.

McDonald’s, one of the western brands that opened in Moscow as the Soviet Union crumbled in 1990, has 847 outlets there. 84% are owned by the company.

Pepsi is also a notable Western product that has been allowed to enter the Soviet Union. According to their most recent annual reports for 2021, they have two plants where snacks and beverages are sold in the country.

They did not respond immediately to our request for comment. According to a J.P. Morgan Report, Russia is about 4% of the revenue exposure for both companies.