Unilever conducts business in Russia
Date
10/24/2024 8:51:24 AM
(MENAFN) British consumer goods giant Unilever has officially finalized its exit from the Russian market, a decision announced in a statement on Thursday. This move comes after the company faced significant backlash for maintaining its operations in Russia despite a widespread corporate withdrawal following the onset of the Ukraine conflict in 2022 and the accompanying Western sanctions.
Unilever has sold all of its business interests in Russia to Arnest Group, a local manufacturer specializing in perfumes, cosmetics, and household products. The transaction also included Unilever's operations in Belarus, marking a significant retreat from the region.
Hein Schumacher, Unilever’s CEO, emphasized that this sale concludes the company’s presence in Russia, reflecting a decisive shift in strategy. However, specific details regarding the terms of the deal were not disclosed.
Under new divestment regulations enacted by the Russian government last year, companies looking to exit the market must secure government approval for any sale. Additionally, these companies are mandated to sell their assets at a minimum 50 percent discount and are subject to an exit tax ranging from 10 percent to 15 percent.
According to reports from the Financial Times, Unilever's assets in Russia, valued at approximately EUR600 million (around USD657 million), were sold for EUR520 million (USD569 million), reflecting the challenging circumstances under which the sale was conducted.
Before its exit, Unilever operated four factories in Russia, which accounted for roughly 1 percent of the company's overall turnover and net profit for the year 2023. This withdrawal underscores the broader trend of multinational companies reevaluating their operations in Russia amidst ongoing geopolitical tensions and economic uncertainties.
MENAFN24102024000045015687ID1108815705
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.