Unilever, the multinational company known for creating Knorr stock cubes and Dove soap, recently concluded its operations in Russia and Belarus, by selling its Russian division to the local producer, Arnest Group. The deal includes its four manufacturing plants in Russia and a unit in Belarus, thus marking the end of Unilever’s business in these countries, shares Hein Schumacher, the company’s CEO. He also acknowledged the complexities involved in this process, such as splitting IT systems, supply chains, and adapting brands to Latin script.
The precise financial details of the sale remain undisclosed, yet local reports indicate an estimated valuation of Unilever’s business at nearly 40 billion roubles (€376 million). The Russian local authorities appear to impose discounts making it difficult for global companies to exit the Russian market.
Arnest Group, a local Russian firm specialising in producing household items, cosmetics and fragrances, has previously acquired the operations of several western corporations in Russia. The company purchased Heineken NV’s assets in Russia for €1 in the previous year, and bought Ball Corporation’s beverage packaging operation for $530 million (approximately €485 million) in September 2022.
Employing about 3,000 individuals, Unilever’s Russian business boasts net assets totalling close to €600 million. The London-based corporation faced disapproval for prolonging its business in Russia following the country’s invasion of Ukraine. A Ukrainian anti-corruption organisation included Unilever in its “International Sponsors of War” list last year.
Moreover, international companies like Unilever and Nestle continued retailing their products, such as Nescafe coffee and Magnum ice cream to Russian consumers, despite publicly condemning Russia’s invasion in February 2022. Some multinational enterprises even experienced a growth in their sales in Russia. – Bloomberg.