Unilever Chief Details Hesitant Departure from Russia
The consumer giant was one of the rare multinational companies that continued operations in the country despite Western sanctions. Read Full Article at RT.com
TroibNews 
Unilever, the British consumer-goods behemoth, has withdrawn from Russia, citing a loss of control over its business operations in the country affected by Western sanctions. CEO Hein Schumacher shared this decision with Bloomberg on Tuesday.
He described the exit as “a very difficult decision to make,” clarifying that the motivation was not the Ukraine conflict itself but rather the complications arising from Western sanctions and Russia’s reactions to them.
The company struggled with difficulties in repatriating cash and faced challenges in overseeing company results and brand management within Russia. Schumacher noted, “I didn’t see a window into the near future where we would regain that control and that drove the decision to exit,” during an interview with Bloomberg Television.
In October, Unilever finalized its exit from Russia by selling its operations to Arnest Group, a local manufacturer focused on perfume, cosmetics, and household products.
Initially, Unilever had been hesitant to leave Russia, where it operated four factories and employed around 3,000 individuals. It was among a small group of multinational consumer companies, including Nestle SA, PepsiCo, and Mondelez, that continued their presence in the country. The company received significant backlash for maintaining operations in Russia despite many corporations pulling out following the intensification of the Ukraine conflict in 2022.
Schumacher reflected on the challenge, stating, “I found that in my last one-and-a-half years, it was arguably the most difficult decision to make,” and he characterized the departure as a “tedious process,” taking over a year to conclude.
As per divestment regulations established by the Russian government last year, companies wishing to leave the country must secure governmental approval for their sales. Additionally, they are mandated to sell their assets at a 50% discount and are subject to an exit tax ranging from 10% to 15%.
While Unilever did not reveal the specific terms of its agreement with Arnest Group, the Financial Times reported previously that the company’s assets, valued at approximately €600 million, were sold for about €520 million.
Sanya Singh contributed to this report for TROIB News
He described the exit as “a very difficult decision to make,” clarifying that the motivation was not the Ukraine conflict itself but rather the complications arising from Western sanctions and Russia’s reactions to them.
The company struggled with difficulties in repatriating cash and faced challenges in overseeing company results and brand management within Russia. Schumacher noted, “I didn’t see a window into the near future where we would regain that control and that drove the decision to exit,” during an interview with Bloomberg Television.
In October, Unilever finalized its exit from Russia by selling its operations to Arnest Group, a local manufacturer focused on perfume, cosmetics, and household products.
Initially, Unilever had been hesitant to leave Russia, where it operated four factories and employed around 3,000 individuals. It was among a small group of multinational consumer companies, including Nestle SA, PepsiCo, and Mondelez, that continued their presence in the country. The company received significant backlash for maintaining operations in Russia despite many corporations pulling out following the intensification of the Ukraine conflict in 2022.
Schumacher reflected on the challenge, stating, “I found that in my last one-and-a-half years, it was arguably the most difficult decision to make,” and he characterized the departure as a “tedious process,” taking over a year to conclude.
As per divestment regulations established by the Russian government last year, companies wishing to leave the country must secure governmental approval for their sales. Additionally, they are mandated to sell their assets at a 50% discount and are subject to an exit tax ranging from 10% to 15%.
While Unilever did not reveal the specific terms of its agreement with Arnest Group, the Financial Times reported previously that the company’s assets, valued at approximately €600 million, were sold for about €520 million.
Sanya Singh contributed to this report for TROIB News
