PepsiCo said on July 6 it would boost investment in Russia by one billion dollars, topping the list of U.S. trade deals expected during President Barack Obama's visit to Moscow this week.
"I am delighted to announce that over three years we expect to invest one billion dollars in our beverage and food businesses in Russia," PepsiCo chief executive Indra Nooyi said.
The increased investment will bring PepsiCo's total outlay in Russia to $ 4 billion.
"This investment reflects very clearly our great confidence in Russia and our long-term commitment to this very important market," she added.
PepsiCo is among the U.S. firms to participate in a U.S.-Russian business summit on July 7 that aims to capitalize on a "reset" of ties expected from Obama's meeting with Russian president Dmitry Medvedev.
"Investors hope to hear some positive comments -- the start of a process that 'clears the air' on a number of investment issues, as well as in the political sphere," said Chris Weafer, chief strategist at UralSib bank. "That being the case, the benefits will be longer term and, currently, more concentrated in private equity and venture capital deals in areas such as technology, agriculture, pharmaceutical and medicare," he added.
At the summit, executives including from oil majors, farm machinery maker John Deer and aircraft maker Boeing will discuss the Russian investment climate, which many have criticised as corrupt and overly bureaucratic.
This month, Boeing is also to launch its joint venture with Russia's VSMPO-Avisma, the world's largest titanium producer, for the production at a Ural region plant of components for Boeing's new Dreamliner passenger plane, according to a deal signed in April.
Copyright Agence France-Presse, 2009
