Ukraine adds Unilever to list of sponsors of Russian war
Multinational firm Unilever has been included in Ukraine’s list of international sponsors of war, the National Agency for Corruption Prevention (NACP) reported in a press release on July 3.
The company, known as a global leader in the food and household chemicals market, owns over 400 brands including Domestos, Axe, Rexona, Dove, Calve, Rama, Brooke Bond, Lipton, Crème Bonjour, CIF, Knorr, Sunsilk, Timotei, CLEAR, Chysta Liniya, and others.
The decision to include Unilever in the list is based on the fact that the company pays significant taxes to the Russian state budget while operating in the Russian Federation, thereby supporting the aggressor’s economy and contributing to the continuation of Russia’s war against Ukraine.
Unilever employs over 3,000 workers in Russia. In 2022, the Russian market accounted for 1.4% of Unilever’s turnover and 2% of its net profit, which increased by 24.9% compared to 2021, amounting to EUR 8.03 billion ($8.7 billion). The company’s revenue reached EUR 60.1 billion ($65.5 billion), marking 14.5% growth. Unilever’s sales increased across all categories, with the highest growth in cosmetics sales (20.8%).
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Following the full-scale invasion, the company pledged to suspend all imports and exports to and from Russia, as well as cease all media and advertising expenses. However, Unilever Russia’s profit doubled from 4.8 billion rubles (EUR 56 million or $61 million) in 2021 to over 9.2 billion rubles (EUR 108 million or $118 million) last year.
Furthermore, thanks to the substantial profit increase (91%), Unilever Russia LLC managed to increase its capital to 34.5 billion rubles (EUR 353 million or $385 million) in 2022 from 25.3 billion rubles (EUR 259 million or $282 million) in 2021, representing a 37% rise. The company paid approximately $50 million in taxes to the Russian budget for the year 2022.
Unilever has stated that its stance on conducting business in Russia remains unchanged. Consequently, its facilities in Omsk, Yekaterinburg, St. Petersburg, and Tula are continuing their operations to ensure the availability of their brands in retail outlets.
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“Unilever cannot claim to be against the war while simultaneously supporting Putin’s war machine,” said Oleksandr Novikov, the head of the NACP.
“We have included this company in the list of international sponsors of the war because their hundreds of millions in tax contributions to the Russian budget help finance the war against Ukraine and may indirectly fund certain groups of Russian mercenaries. Unilever, under the leadership of its new CEO, Heiner Schumacher, needs a fresh start to uphold human rights values. If Unilever fails to leave Russia, history will remember its complicity in this war.”
The NACP believes that Unilever’s actions indicate its unwillingness to join the coalition of ethical and responsible businesses that have chosen the side of democracy and freedom. By making substantial contributions to the Russian state budget, Unilever not only supports the Russian economy but also indirectly supports the actions of the aggressor.
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The following companies are also included in this list: Procter&Gamble, OpenWay Group, Danieli, TMS Tankers Ltd., Minerva Marine Inc., Thenamaris Ships Management, Delta Tankers Ltd., Dynacom Tankers Management Ltd., Leroy Merlin, ComNav Technology, Mondi Group/Mondi PLC, eKassir, Liberian International Ship & Corporate Registry, Bonduelle, Auchan Holding, Metro Cash & Carry, Buzzi Unicem, Yves Rocher, Xiaomi, Raiffeisen Bank International, OTP Bank, Mondelez International, and Geely.
Inclusion in this list ensures that these companies are added to the World-Check database. The database tracks individuals and organizations with an elevated risk profile and is used worldwide to detect and manage financial, regulatory, and reputational risks. Interaction with the World-Check database helps protect the international financial sector from sponsors of the Russian war, as cooperation with such entities poses a danger to socially responsible businesses.
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Read the original article on The New Voice of Ukraine
