Unilever Completes Sale of Russian Business
Marmite maker Unilever has officially divested its business in Russia, a move that comes after facing criticism for not withdrawing from the country following Moscow’s invasion of Ukraine over two years ago. The consumer goods giant has confirmed the completion of the sale of its Russian business to Arnest, a manufacturer of household goods and cosmetics in the region. Along with the sale, Unilever has transferred ownership of its four factories in Russia and its business operations in Belarus.
Although the financial details of the transaction were not disclosed by Unilever, reports suggest the deal was valued at 520 million euros (£435 million). Hein Schumacher, the chief executive of Unilever, stated, “Over the past year, we have been carefully preparing the Unilever Russia business for a potential sale. This work has been very complex, and has involved separating IT platforms and supply chains, as well as migrating brands.”
Unilever’s decision to sell its Russian operations follows criticism for its delayed exit from the country in the wake of Moscow’s invasion of Ukraine. While many other Western businesses swiftly left Russia during that time, Unilever maintained its presence as it had been operating in the region since 1991. The company has noted that its Russian operations contributed to approximately 1% of its sales and net profit in the first half of 2024 and supported around 3,000 jobs in the region.
The completion of this sale marks a significant strategic move for Unilever as it aligns its business portfolio with evolving geopolitical circumstances. The company’s decision to divest its Russian business reflects its commitment to responding to global challenges and ensuring business operations are in line with ethical considerations. Unilever’s shift away from Russia underscores the company’s dedication to responsible corporate behaviour and proactive decision-making in a dynamic international landscape.