Unilever’s chief executive reconsiders the Russian business, responding to external pressures.
- CEO Hein Schumacher pledges a fresh review of Unilever’s decision to stay in Russia.
- Pressure mounts on Unilever as global firms exit the Russian market post-Ukraine invasion.
- Unilever aims to prevent its business from falling into Russian state control.
- Ukrainian government labels Unilever as a sponsor of war due to continued operations.
Unilever’s chief executive, Hein Schumacher, has announced a commitment to reassess the company’s operations in Russia. Facing increasing pressure from various stakeholders, Schumacher indicated that he will examine the situation with ‘fresh eyes’. This review comes in response to a personal appeal from a Ukrainian soldier.
In contrast to several international companies, such as Coca-Cola and Arla Foods, which have ceased their operations in Russia following the invasion of Ukraine, Unilever persists in maintaining its presence. The corporation continues to provide what it describes as ‘everyday essential food’ to the Russian market.
Unilever has emphasised that continuing operations in Russia is a strategic choice to prevent the company’s assets from being appropriated by the Russian state. This approach is intended to safeguard the business from direct or indirect state control.
Valeriia Voshchevska, representing the Ukraine Solidarity Project, supported Schumacher’s intention to review the decision. She stated, ‘It’s refreshing to hear that Unilever’s new chief executive will look at its operations in Russia with fresh eyes.’ She further commented on the reputational harm and potential ethical implications of Unilever’s ongoing contributions to Russia’s economy.
Reports revealed that Unilever would allow its 3,000 Russian employees to be conscripted into the Ukraine conflict, while over 7,000 employees from other companies like Nestlé also face conscription. This development aligns with the Ukrainian government’s classification of Unilever as a sponsor of war, due to its continued tax payments in Russia.
The situation remains complex as Unilever balances ethical concerns with strategic business interests in Russia.
