Unilever offloads its operations in Russia
Unilever, recognized for brands such as Dove soap and Hellmann's mayonnaise, declared on Thursday that it has finished the sale of its Russian operations to Arnest Group, a local producer of fragrances, cosmetics, and household items, without disclosing the purchase price.
This transaction encompasses Unilever's entire business and four factories in Russia, as well as its operations in Belarus.
The specifics of the deal were kept confidential.
In his first year leading Unilever, CEO Hein Schumacher orchestrated plans to spin off the company's ice cream division, potentially letting go of 7,500 employees, and focusing on 30 core brands to combat past underachievements.
Unilever's continued operation in Russia following Moscow's incursion into Ukraine in February 2022 has drawn criticism from activists and Ukraine's administration, although in March 2022, Unilever became the first major European food company to halt imports and exports with Russia.
Schumacher stated in a statement, "For the past year, we've been meticulously readying the Unilever Russia business for a potential sale. The process has been intricate, involving the separation of IT systems and supply chains, as well as rebranding products to Cyrillic."
B4Ukraine, a coalition of advocacy groups striving to persuade Western businesses to disengage from Russia, lauded Unilever's decision to sell its assets and urged other multinational corporations to take similar action.
The Kremlin wants at least a 50% reduction in the sale price for companies from what it refers to as "hostile" nations — those that have imposed sanctions on Russia.
Arnest Group did not immediately respond to requests for comment.
The departure of corporations from Russia has resulted in foreign firms incurring over $107 billion in write-downs and lost income, according to a Reuters examination in March.
Earlier this year, Danone revealed it had received regulatory approvals to dispose of its Russian assets at a loss of $1.3 billion.
This transaction marks Unilever's exit from the Russian market, selling its entire business and related operations.
The sale of Unilever's Russian operations to Arnest Group has significant implications for the local business landscape.
