Irn-Bru maker AG Barr says it will not fulfil any further orders to the Russian market as a result of Moscow’s decision to invade Ukraine.
The company has a franchise agreement with the Moscow Brewing Company (MBC) for the Irn-Bru brand in Russia.
Irn-Bru is believed to be Russia’s third biggest-selling soft drink, but Cumbernauld-based AG Barr told STV News on Friday it would not fulfil any further orders, “given the actions of the Russian state”.
The company says MBC purchased concentrate on a relatively infrequent basis, with drinks then produced locally. It also said the agreement forms a small part of the firm’s international business and accounts for less than 0.1% of group turnover.
AG Barr’s decision comes after finance secretary Kate Forbes asked companies to take “economic action” by reviewing operations for links and connections to Russia and severing them.
In an open letter to the business community, Forbes outlined how the Scottish Government would use all available powers to end trade and investment activity with Russia.
She also said there was support available for businesses that are adapting and cutting links with the country.
Forbes wrote: “For any sanctions to be meaningful they will also have an impact on the countries and economies that are imposing them.
“That will be true here, as it will be across the rest of the UK, EU and US, however any price paid here is significantly less than that being paid by the people of Ukraine.”
Forbes said many businesses, sporting and cultural organisations had already divested their interests in Russia, their trading relationships with Russian entities and their participation in lucrative Russian contracts.
She encouraged businesses to work quickly but with care for the safety of any employees or individuals they may work with.