Unilever finally drops Russian branch after years of criticism
- Consumer giant refused to pull out of country after Ukrainian invasion
- Russian media now report that a sales agreement has been signed with chemical company Arnest
Unilever is finally pulling out of its Russian division, after years of criticism over the company’s continued sale of ice cream in the war-torn country.
The consumer giant – whose brands include Magnum, Wall’s and Ben & Jerry’s, as well as Dove soap and Hellmann’s mayonnaise – sparked outrage by refusing to withdraw from the country after the invasion of Ukraine more than two years ago.
But Russian media now report that a sales agreement has been signed with chemical company Arnest.
Criticism: Unilever sparked outrage by refusing to withdraw from Russia after invasion of Ukraine more than two years ago
The deal is speculated to be worth between £300 million and £334 million, after a 50 percent discount on asset sales under Russian law.
Arnest President Alexey Sagal is one of the Russian businessmen who has made money from Western companies leaving the country. He bought the Russian units of beverage packaging company Ball’s and brewer Heineken.
Unilever declined to comment last night. Russian business magazines Kommersant and RBC reported that the deal has been submitted to the Kremlin’s foreign investment subcommittee for approval.
The government has not yet formally approved the proposal but is prepared to accept it, two anonymous sources told the Financial Times.
The Ukrainian government named Unilever an “international sponsor of war” on a list of companies still operating in Russia.
Campaigners claim that Unilever is indirectly funding the war chest through corporate taxes.
Unliver boss Hein Schumacher, who succeeded Alan Jope in July 2023, had insisted that staying in Russia was “the last bad option”. Leaving could mean the company falling into Russian hands, Schumacher and his team argued. The company had stopped advertising and importing to the country.
Mark Dixon, founder of the charity Moral Rating Agency, which aims to get companies out of Russia, said: “It’s interesting that a half-billion-dollar payment can help (Unilever) act morally.
‘While an exit would be good news, we must never forget that Unilever is supporting the Russian economy with half a billion pounds a year, which is enough to pay for a thermobaric rocket every nine days or an Iranian drone every 17 minutes. It won’t get a medal for dancing with the devil for two and a half years.’
The Mail on Sunday revealed last August that FTSE 100 giant Coca-Cola HBC refused to close factories in Russia and instead switched to selling a local counterfeit cola.
DIY INVESTMENT PLATFORMS
AJ-Bel
AJ-Bel
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free Fund Trading and Investment Ideas
interactive investor
interactive investor
Fixed investment costs from £4.99 per month
Saxo
Saxo
Get £200 back on trading fees
Trading 212
Trading 212
Free trading and no account fees
Affiliate links: If you purchase a product, This is Money may earn a commission. These deals are chosen by our editorial team because we think they are worth highlighting. This does not affect our editorial independence.