Unilever is a British consumer and household goods giant that has maintained extensive operations in Russia after its full-scale invasion of Ukraine in 2022.
The company owns popular brands such as Dove soap, Cornetto, Ben & Jerry’s, Marmite ice creams, Rexona deodorant, Hellmann’s mayonnaise, Sunsilk shampoo, Knorr soups, Percil detergent, Domestos disinfectant, etc.
Unilever has headquarters in London, United Kingdom, and Rotterdam, Netherlands.
In Russia, the company has net assets of around €775 million, including eight plants. Russian business represents approximately 1.4% of the company’s turnover.
In 2022, Unilever condemned Russia’s invasion, stopped importing and exporting some products to and from the country, halted committing new capital, and no longer advertises in the market.
Yet, the conglomerate defended its right to continue operating in Russia under the guise of providing “essential goods” to the local population. A deep concern about its Russia-based employees was also cited as a reason to remain in the market.
In July 2023, Ukraine’s National Agency on Corruption Prevention (NACP) designated Unilever an “International Sponsor of War” on the basis of its “significant tax contribution” to the Russian state budget, which promotes “the continuation of Russia’s war against Ukraine.” According to data collected by the Kyiv School of Economics, Unilever earned $728 million in Russia in 2023, while paying roughly $33 million just in profit taxes to the Russian state.
Ukraine’s government move caused anger among British MPs, who criticized Unilever for its presence in Russia. A Conservative MP Bob Seely stated: “I understand there’s a financial cost [to leaving Russia] but at the same time, every time these people pay tax to the Russian state, they are funding a war.”
The MP dubbed Unilever leadership “a bunch of hypocrites” and said the company represented “a moral void”. Labour MP Chris Bryant said: “The business secretary should be naming and shaming companies still trading in Russia.”
Unilever also faced many public protests in London led by B4Ukraine’s coalition partner, the Ukraine Solidarity Project, as well as by local activist groups in Ukraine.
Responding to the “international sponsor of war” designation and the growing public pressure that followed, the new CEO Hein Schumacher promised to look at Unilever’s Russia business with “fresh eyes.” Following the review, the firm once again defended its position to keep its Russian business by referring to “containment actions” taken to “minimize Unilever’s contribution to the Russian state.” The nature of such “containment actions” remains unknown.
In March 2024, according to Bloomberg reports, the soap-to-stock-cube conglomerate said it will spin off or sell its ice cream business but will keep making Cornetto and Carte D’Or in Russia even after shedding its global ice cream unit. Most of the company’s ice cream production in Russia is carried out by Inmarko, which Unilever acquired in 2008. The unit makes Magnat, the Russian equivalent of Magnum, and a Twister-like product called Max, as well as a range of Soviet-style ice creams.
Correspondence with company
Since February 2022, Unilever also became subject to Russia’s Partial Mobilization Order obliging all companies, including foreign ones operating in Russia, to contribute directly to the war effort, including potentially through the conscription of Unilever’s 3,000-strong workforce and the provision of other material resources such as transportation, IT infrastructure, etc.
In a letter to B4Ukraine, the company confirmed that it would allow its Russian workers to be conscripted if they are required to serve.
In its engagements with Unilever, B4Ukraine urged the company leadership to consider all possible options for a swift exit, including finding a suitable buyer for its Russia business operations as well as dropping the keys and leaving, while pursuing international arbitration.
• Latest news
- King urged to revoke royal warrants of Cadbury and Marmite-owner Unilever over Russia links — The Telegraph
- Unilever to keep making Russian ice cream after split — Bloomberg
- Unilever still earning millions in royalties from Russian subsidiary — NL Times