Unilever continues to make money in Russia. While Ukraine is demanding an immediate withdrawal from the country, the company is defending its presence in Russia.
Ukraine has added British consumer goods group Unilever to its list of “international war sponsors”. The background to this decision is that Unilever continues to do business in Russia.
The National Anti-Corruption Agency justified the decision with the company’s presence in Russia and its “high tax payments” to the Russian state. As a result, Unilever supports the “aggressor’s economy” and the “continuation of the Russian war against Ukraine,” it said.
Unilever defends business in Russia
Unilever said it stood by a statement issued in February condemning the war in Ukraine as a “brutal” and “senseless” act by the Russian state. Unilever has stopped importing and exporting, but is delivering “food and hygiene items (…) made in Russia to the people of the country,” it said.
Unilever told the BBC that withdrawing from Russia would not be easy. The businesses could either be collected or taken over by the Russian state. So far, the company has not found a way to sell the business in a way that would prevent the Russian state from further benefiting it while protecting employees. Continuing the business under “strict conditions” is therefore the best way at the moment.
It can actually be difficult for western companies to withdraw from Russia. The Kremlin puts pressure on companies to keep their investments in the country – sometimes even using intelligence methods. According to a report in the Financial Times, there are plans to seize “naughty” Western companies and take over the assets at bargain prices.
303 million euros in taxes paid in Russia
Unilever is known for its well-known brands such as Dove toiletries, Magnum ice cream and Cif cleaning products. In London, Ukrainian and British activists demonstrated in front of the Unilever headquarters on Monday. A poster hung showed a Dove advertisement showing wounded Ukrainian soldiers instead of models.
According to company figures, Unilever generated about two percent of its net profit in 2022 from activities in Russia. As a result, the company paid around €303 million in taxes in the country.