Unilever Exits Russia
British consumer-goods giant Unilever is exiting the Russian market, having initially remained despite the corporate exodus following the Ukraine conflict in 2022. Read Full Article at RT.com.
TroibNews 
The British consumer-goods giant Unilever has finalized its departure from Russia, as announced in a statement on Thursday. The company faced significant backlash for staying put in Russia while many others exited in the wake of the Ukraine conflict in 2022 and the subsequent Western sanctions.
Unilever has transferred all its Russian operations to Arnest Group, a local manufacturer specializing in perfumes, cosmetics, and household products. This sale also included Unilever’s business in Belarus.
“The completion of the sale ends Unilever Russia’s presence in the country,” said CEO Hein Schumacher.
Details regarding the financial aspects of the deal have not been disclosed. As per divestment regulations enacted by the Russian government last year, companies leaving Russia are required to obtain governmental approval for sales, offer assets at a 50% discount, and pay an exit tax ranging from 10% to 15%.
The Financial Times reported that the company’s assets, estimated to be worth €600 million, were sold for €520 million.
Unilever’s operations in Russia encompassed four factories and represented roughly 1% of the group’s turnover and net profit for 2023, according to the FT.
Arnest Group, led by Russian industrialist Aleksey Sagal, has previously acquired the local assets of other notable companies, such as US can maker Ball Corp, Dutch brewer Heineken, and Swedish cosmetics firm Oriflame.
Unilever produces a variety of well-known brands, including Fairy and Domestos cleaning products, Dove soap, and Ben & Jerry’s ice cream, amongst around 400 other food and household chemical brands. The company suspended exports and imports with Russia in March 2022 and halted investments, advertising, and new projects in the country. Nevertheless, it continued the production and sale of what it termed “vital food and hygiene products” in Russia, a move that led to the Ukrainian government labeling it “an international sponsor of war” in 2023.
Initially, Unilever had not indicated any plans to leave the Russian market. In July 2023, it expressed its decision to remain, opting against the risk of nationalization or selling off its Russian division. Reports surfaced in September suggesting that the UK-based giant had reversed its decision and chosen to divest its Russian assets.
Since 2022, Reuters has estimated that the exit from Russia has resulted in losses exceeding $107 billion for foreign companies in terms of writedowns and lost revenue.
James del Carmen for TROIB News
Unilever has transferred all its Russian operations to Arnest Group, a local manufacturer specializing in perfumes, cosmetics, and household products. This sale also included Unilever’s business in Belarus.
“The completion of the sale ends Unilever Russia’s presence in the country,” said CEO Hein Schumacher.
Details regarding the financial aspects of the deal have not been disclosed. As per divestment regulations enacted by the Russian government last year, companies leaving Russia are required to obtain governmental approval for sales, offer assets at a 50% discount, and pay an exit tax ranging from 10% to 15%.
The Financial Times reported that the company’s assets, estimated to be worth €600 million, were sold for €520 million.
Unilever’s operations in Russia encompassed four factories and represented roughly 1% of the group’s turnover and net profit for 2023, according to the FT.
Arnest Group, led by Russian industrialist Aleksey Sagal, has previously acquired the local assets of other notable companies, such as US can maker Ball Corp, Dutch brewer Heineken, and Swedish cosmetics firm Oriflame.
Unilever produces a variety of well-known brands, including Fairy and Domestos cleaning products, Dove soap, and Ben & Jerry’s ice cream, amongst around 400 other food and household chemical brands. The company suspended exports and imports with Russia in March 2022 and halted investments, advertising, and new projects in the country. Nevertheless, it continued the production and sale of what it termed “vital food and hygiene products” in Russia, a move that led to the Ukrainian government labeling it “an international sponsor of war” in 2023.
Initially, Unilever had not indicated any plans to leave the Russian market. In July 2023, it expressed its decision to remain, opting against the risk of nationalization or selling off its Russian division. Reports surfaced in September suggesting that the UK-based giant had reversed its decision and chosen to divest its Russian assets.
Since 2022, Reuters has estimated that the exit from Russia has resulted in losses exceeding $107 billion for foreign companies in terms of writedowns and lost revenue.
James del Carmen for TROIB News
