PEPSICO has decided not to ship 2000 tonnes of Scottish seed potatoes for planting in Russia.
The potatoes were due to be shipped from Aberdeenshire company Saltire Seed to Russia in the next few days. However following criticisms of the trade in light of sanctions against Russia as a result of its invasion of Ukraine, PepsiCo has now said that it will find another use for the potatoes outside Russia.
The deal is believed to be worth £600,000 – but PepsiCo stated that the Scottish potato growers will be fully compensated and will not end up out of pocket.
The Scottish Government had been drawn into the toxic deal as they were urging farmers to disinvest in Russia whilst also signing off documentation to allow the shipment to proceed.
A ScotGov spokesperson stressed that it was not responsible for approving export deals – that was reserved to Westminster – but Scottish officials were required to carry out various activities in relation to approved deals, including the inspection and certification of goods. "The Scottish Government and its economic agencies will use all available powers not to support trade and investment activity with Russia,” said the spokesperson.
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