Support The Moscow Times!

Starbucks Could Be Skirting Russia Sanctions Through Swedish Farmers

Pexels

Starbucks is helping a European farming cooperative skirt Russia’s counter-sanctions by exporting milk in ready-made coffee drinks, the Fontanka.ru news website reported, citing a Swedish farming publication.

Russia banned the import of a range of foods from Western countries in 2014 in response to sanctions imposed on Russia for its involvement in Ukraine and the annexation of Crimea. The ban, targeting products like dairy and meat, has been extended until late 2018.

Starbucks began selling five milk-based ready-to-drink coffee beverages in Russia in February after receiving sales certificates earlier in the year, Fontanka cited corporate data as saying on Wednesday.

Three-quarters of the milk in these beverages comes from Arla Foods, a Danish-Swedish cooperative that includes German and British farmers, according to Sweden’s ATL farming magazine cited by Fontanka.

The cooperative has arranged the supplies of 1.5 million beverages to 1,350 outlets in Russia this year, including to major supermarkets and gas station convenience stores, Fontanka cites its sales manager in Russia as saying.

Yelena Ostapkevich said Arla Foods partnered with Starbucks on the milk-based coffee drink before Russia imposed its import ban in August 2014.

The Danish-Swedish cooperative reportedly also exports lactose-free milk, one of the several agricultural products excluded from Russia’s import ban.

Arla said in August 2014 it had stopped production of all goods for the Russian market, which at the time accounted for slightly over 1 percent of Arla’s global annual revenue.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysiss and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more