MOSCOW, August 6 (RIA Novosti) - American beverage producer The Coca-Cola Company said its decision to cancel advertising on four Russian federal television channels is unrelated to sanctions on the country, Russian business daily Kommersant reported Wednesday.
“The Coca-Cola Company insists the decision is of purely economic nature, unrelated to the sanctions,” the newspaper reported.
Three of the channels are linked to Bank Rossiya that is on the US sanctions list, with the fourth channel being affiliated to the Russian Defense Ministry.
The decision was made to advertise only on key federal channels that are more suitable for the company’s target audience. The company’s second-quarter sales, which have dropped slightly, are also said to have played a part in the decision.
The Coca-Cola Company is one of the biggest advertisers in Russia with an annual spending of 2.5 billion rubles ($70 million).
The United States and the European Union imposed sanctions against Russia over its stance on the Ukrainian crisis. The United States issued a list of Russian companies that US parties are prohibited to cooperate with. Moscow has repeatedly called such measures counterproductive and has warned against repercussions.
