17 submarines in exchange for

Another 11/01/20 17 submarines in exchange for “Pepsi-Cola”: how to “disarm” the Soviet Union

In 1989, in exchange for a concentrate for the production of carbonated soft drink “Pepsi-Cola” the Soviet Union gave the company owns the famous brand fleet of a – 17 decommissioned nuclear submarines and several ships. This gave rise to the Executive Director of PepsiCo Donald McIntosh Kendall jokingly say that he disarm the USSR faster, than the government of George Bush.

Barter trade

Economic ties between the United States and the Soviet Union began to strengthen in 1959, when Khrushchev and Eisenhower agreed to hold exhibitions of the achievements of the two countries. The first of these was the Soviet exhibition in new York in June of the same year. Then the American companies were given the opportunity to present products in response to the exhibition in Moscow. Took advantage of this chance by Donald M. Kendall at that time he was responsible for international trade “Pepsi”. Stand in Moscow’s Sokolniki Park became a place where Soviet citizens first tried soda “Pepsi-Cola”. A considerable role was played by American foreign office under – Secretary of state personally asked Kendall to bring their goods to the USSR. In this way the US government apparently hoped to convince the Russian to the Western way of life.
After Kendall were treated to a sweet hot drink during the debate, Nikita Khrushchev, it was a success. “Pepsi-Cola” became the first in the history of American consumer product that is put on the market of the USSR. Bottling plant sodas in 1974 was opened in Novorossiysk. The year before, the magazine “Ogonek” published an interview with Donald M. Kendall, in which American businessman praised the Russians as “reliable and interesting partners in business”, and also said that in exchange for concentrate PepsiCo receives from the Soviet Union, cognac, vodka and champagne.
the Barter was essential as the Soviet rouble was not included among the convertible currencies. Pepsi was able to popularize among Americans the vodka “Capital”, making the Soviet brand of strong drink second at the US market after the Swedish vodka Absolut. In the year the sales volume of “Capital” was made in America of 150-200 million dollars.

the deal of the century or a curiosity?

In 1989, when the company “Pepsi” was already 21 plant in the Soviet Union, for another batch of syrup Moscow gave 17 old submarines, a frigate, a cruiser and a torpedo.
In the article from may 10, 1989 “Soviets Buy American” journalist “new York times” flora Lewis gave details of the deal, which she called “a good way to help perestroika”. As it turned out, each of the submarines cost the Americans only 150 thousand dollars. It is noteworthy that during the Second world war, Donald M. Kendall has served not just anywhere, but in the naval forces of the United States, and was well versed in the vehicles. Maybe that’s why he agreed to the Soviet proposal. At the same time, Kendall has purchased Soviet oil tankers to create joint ventures with partners from Norway.
the same Submarine was subsequently resold by PepsiCo as scrap metal. As told Slovak newspaper “Hospodárske noviny” Russian historian Gleb Barayev, it was about obsolete submarines of project 613, which was built in the years 1951-57. Of course, they have previously removed all the weapons, therefore no “disarmament”, speech was not.
“Pepsi” continued the practice of barter to the collapse of the Soviet Union. In the spring of 1990, for example, the company received a few cargo ships and another batch of vodka. However, to open, as planned, an additional 26 plants on the same monopolistic conditions “Pepsi” did not work. Since 1992 the Russian economy has become a market, and barter trade in the past. Passed and the era of domination of PepsiCo in the domestic market – the former Soviet citizens got a taste for imported Coke. However, personally, to Donaledu M. Kendall, who met with Brezhnev and Kosygin, Moscow remained friendly. In 2004, President Vladimir Putin has awarded the former head of PepsiCo with the Order of friendship.

Timur Sagdiyev

© Russian Seven

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