Coca-Cola’s Contribution to the Russian Economy Assessed at HSE University
Coca-Cola has invested over $6 billion in the Russian economy according to data published in a new study by the HSE Laboratory for Studies in Economic Sociology
Unlike common reports on leading companies’ dynamics, the LSES study provides a comprehensive assessment of the big investor’s contribution to Russia’s socio-economic development, including direct investment development, impact on GDP growth, taxation, and high-income job creation.
For example, in 2018, the share of added value produced by Coca-Cola out of total Russian GDP, taking into account indirect effects, totalled 0.2%. Cumulative tax payments, including those by suppliers and clients, exceeded 36 billion roubles, which comprises over 0.2% of total taxes paid to the Russian budget.
The company pursues policies aimed at supporting local manufacturers. Over 96% of direct purchases are made in Russia from local suppliers. In 1998, this indicator didn’t exceed 10%.
Coca-Cola employs over 7,700 people in Russia, 44% of whom are under 30 (the average indicator in Russia is 22%). Average salaries are 44% higher than the industry’s average.
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