Unilever chief clarifies reluctant exit from Russia

(MENAFN) Unilever's CEO, Hein Schumacher, explained on Tuesday that the company's decision to pull out of Russia was driven by its diminishing control over business operations, not directly by the ongoing conflict in Ukraine. In an interview with Bloomberg, Schumacher stated that Western sanctions and Russia's retaliatory measures made it increasingly difficult for the company to operate effectively in the country.

Unilever faced significant challenges in moving money out of Russia, as well as in overseeing company operations and managing its brands. Schumacher emphasized that, with no clear path to regain control, the company ultimately decided to exit.

In October, Unilever completed the sale of its Russian business to Arnest Group, a local manufacturer of household and beauty products. The company had been reluctant to leave, as it employed around 3,000 people and operated four factories in Russia. Unilever was one of the few multinational consumer goods companies, alongside Nestlé, PepsiCo, and Mondelez, that continued operations in the country despite the corporate exodus following Russia's invasion of Ukraine in 2022.

Schumacher admitted that the decision to exit was one of the toughest he had faced in his tenure, describing the process as "tedious" and taking over a year to finalize. Under Russian divestment regulations, companies leaving the country must obtain government approval for the sale, sell their assets at a 50% discount, and pay an exit tax of 10-15%.

While Unilever did not reveal the financial details of the sale, earlier reports indicated that the company's assets, valued at approximately €600 million ($631 million), were sold for €520 million ($547 million).

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