NACP NACP
A-
A
A+
A
A
Звичайна версія сайту

Fast food that really kills: NACP adds Subway to the list of international war sponsors

10.01.2024

The National Agency on Corruption Prevention (NACP) has added the American multinational fast food franchise Subway to the list of international sponsors of war. More than 500 of the company's restaurants continue to operate in the aggressor's market, paying hundreds of thousands of dollars in taxes to the Russian budget. Subway actively advertises its activities through sanctioned Russian social networks and delivers food through Yandex services, which cooperate with the government and law enforcement agencies of the aggressor country.

Subway is one of the largest chains in the world in terms of the number of restaurants. It is known for its sandwiches, salads, and rolls. The company positions itself as a "healthy alternative to traditional fast food." The company claims to be concerned about the health of consumers, but continues to operate in Russia, financing the murder of Ukrainians. The Russian Subway chain is now the third largest in Europe after the UK and Germany. 

The company has been operating in Russia for over 20 years, has created about 6,000 jobs, and has 550 restaurants in 122 cities. Since the start of the full-scale invasion, the company has not reported any cuts in its operations in Russia. Thus, in addition to paying taxes to the state budget of the terrorist state, the company provides jobs to Russians, supporting the Russian economy and employment.

The peculiarity of Subway's business is that they operate under the franchisee system, i.e. there is a large network of legally separate entities that operate under the Subway brand, generate revenue and pay taxes. In Russia, the Subway franchise is owned by Subway Russia Service Company, headquartered in St. Petersburg.

Subway said that all restaurants in the country are independently owned and operated by local and master franchisees, so the restaurants remain open in Russia. This statement regarding the inability to influence its own franchisees is untrue and misleading. 

For example, in May 2022, Russian banks began to block royalties (payments for the use of the franchise) because they were not ready to take responsibility for processing payments to the franchisor from an "unfriendly" state (the United States). Clients could not obtain titles from Russian franchisees and send payments to the United States. 

In this regard, at the request of Subway, Nevsky IP LAW conducted the necessary analysis of contracts and sanctions legislation of the Russian Federation and found appropriate legal mechanisms that allow for the legal collection of royalties from franchisees and their transfer to the holding company. As a result, the company helped the client (Subway) to receive royalties from Russian franchisees again. The banks resumed processing payments, and the franchisees returned to fulfilling their royalty obligations.

Subway in Russia actively conducts advertising campaigns through the social networks VK and Odnoklassniki, which belong to the sanctioned legal entity VK Company LLC. Subway also uses food delivery services through the Yandex.Eda service. It should be remembered that this service is controlled by the Yandex group of companies, which cooperate with the government and law enforcement agencies of the aggressor country, in particular with the FSB. Yandex services have previously been included in the list of candidates for NAPC sanctions.

There have been no attempts by the company's management to condemn Russia's war against Ukraine.

The NACP is the body responsible for promoting the development of a compliance system in the private sector. During compliance procedures, contractors are subject to integrity checks, including compliance with socially responsible business practices in accordance with OECD standards. The list of "International Sponsors of War" on the War and Sanctions portal is a powerful reputational tool for achieving integrity of supply chains in the international dimension, withdrawal of international business from Russia, and thus reducing the financial and technological capacity of the terrorist country to kill Ukrainians. One of the platform's "levers of pressure" is cooperation with the World-Check database, which is used by banks and insurance companies to assess risks. That is why for global companies, the consequences of being on the list are worse than continuing to do business with the aggressor country.

Latest News

10.07.2025
08:45
Ukraine has demonstrated significant progress in preventing and combating corruption - results of the 5th round of evaluation under the OECD Istanbul Anti-Corruption Action Plan
09.07.2025
18:45
Conflict of interest: protocols, substantiated conclusions and orders for June 2025
16:00
Full audits of declarations: case against the village heads of Khotianivka and Oseshchyna in the Vyshhorod City Council for false declarations referred to court
07.07.2025
15:32
Ukraine and Poland deepen cooperation in the field of corruption prevention: Memorandum signed between NACP and CBA
04.07.2025
16:10
Lifestyle monitoring: top official of the State Enterprise ‘Forests of Ukraine’ suspected of illegal enrichment and declaring false information
03.07.2025
15:45
NACP and WWF strengthen partnership for systematic anti-corruption efforts in natural resource management
15:30
Lifestyle monitoring: over UAH 5 million to be confiscated for the state budget from an official of the State Migration Service, following a decision by the Appeals Chamber of the High Anti-Corruption Court
12:15
NACP, the Defence Procurement Agency and the State Logistics Operator presented progress in implementing transparency, integrity and accountability mechanisms in defence procurement
02.07.2025
12:45
Full audits of declarations: former deputy of the Kharkiv Regional Council notified of suspicion of false declarations based on NACP materials
11:00
NACP launched an updated version of the POLITDATA 2.0 register
01.07.2025
16:33
Full audits of declarations: The State Bureau of Investigation has notified the former deputy head of the Khmelnytskyi Regional Prosecutor's Office of suspicion of declaring false information
27.06.2025
16:45
Lifestyle monitoring: former deputy head of the Supreme Economic Court of Ukraine suspected of illegal enrichment
15:00
The Government, NACP and implementing agencies discussed progress and challenges in implementing the State Anti-Corruption Programme by the end of 2025
26.06.2025
17:30
Full audits of declarations: indictment against an official of the State Service of Ukraine for Geodesy, Cartography and Cadastre in the Kyiv region referred to court
15:15
Full audits of declarations: former deputy mayor of Dnipro informed of suspicion of illegal enrichment and false declarations
25.06.2025
18:00
Full audits of declarations: former member of the village council in Sumy region charged with criminal liability for false statements in his declaration
16:30
NACP, together with the OECD, held bilateral consultations engaging more than 40 state institutions within the fifth round of monitoring in Ukraine
24.06.2025
12:09
Civil forfeiture: Based on NACP materials, the High Anti-Corruption Court has confiscated over UAH 8.5 million from a couple of customs officers and their son, a district council official, in favour of the state.
23.06.2025
19:30
UAH 7.8 million will be confiscated from a Kharkiv police officer and transferred to the state budget based on NACP materials: decision of the Appeals Chamber of the High Anti-Corruption Court
15:10
How the NACP protects whistleblowers: Legal guarantees and practice
Чат-бот Telegram
contact center
Чат-бот Telegram
Contacts
+38 (044) 200-06-94 info@nazk.gov.ua
працює з 9:00 до 18:00
Технічна підтримка
support@nazk.gov.ua