Consumer goods giant Unilever leaves Russia due to loss of control over operations
Hein Schumacher, CEO of Unilever Plc, has said that Unilever Plc has decided to leave Russia due to the loss of control over its operations in the country.
Source: Bloomberg
Details: This was a result of the growing difficulties associated with Russia's response to Western sanctions imposed over the war in Ukraine.
Schumacher said that the company could no longer effectively move funds from and to Russia, evaluate its performance or influence brand management.
"I didn’t see a window into the near future where we would regain that control and that drove the decision to exit," he told Bloomberg Television.
In October, Unilever, the maker of the well-known Dove, completed the sale of its Russian unit to local company Arnest Group without disclosing the deal.
The unit's assets were worth about €600 million (US$629 million). It included four factories and about 3,000 employees.
The Russian authorities have made it harder for Western companies to exit by introducing new taxes and reducing the valuation of deals after the introduction of sanctions.
In addition, the withdrawal of profits from the country requires permission from the Russian government, which is difficult to obtain.
"I found that in my last one and a half year, it was arguably the most difficult decision to make," Schumacher said, describing the process of leaving Russia as "a tedious process".
Background: The UK conglomerate Unilever, which produces household chemicals and food products, has announced its withdrawal from the Russian market.
Support UP or become our patron!
