16:37 03.07.2023

NACP lists Unilever as intl war sponsor

3 min read
NACP lists Unilever as intl war sponsor

The National Agency on Corruption Prevention (NACP) has included the British corporation Unilever in the list of international sponsors of war, because, working in the Russian Federation, it supports the economy of the aggressor country and contributes to the continuation of the war against Ukraine, the agency's press service reported.

"We have added them as an International Sponsor of War because their hundreds of millions in tax contributions to the Russian state are helping to fund its attacks on Ukraine and could be indirectly funding a mercenary criminal group. Unilever has a new CEO in Hein Schumacher, it needs a new start and to live up to its values of human rights. Unilever must leave Russia now or history will record its complicity," Head of the NACP Oleksandr Novikov said.

Unilever is one of the world leaders in the food and household chemicals market. It owns more than 400 brands, products are produced at 280 enterprises, including: Domestos, Ax, Rexona, Dove, Calve, Rama, Brooke Bond, Lipton, Creme Bonjour, CIF, Knorr, Sunsilk, Timotei, CLEAR and etc.

According to the NACP, over 3,000 employees work for Unilever in Russia. In 2022, Russian business accounted for 1.4% of the corporation's turnover and 2% of its net profit, which grew by 24.9% last year compared to 2021, to EUR 8.03 billion. Revenue increased to EUR 60.1 billion (up by 14.5%). Sales increased in all categories, with the largest increase in cosmetics (up by 20.8%).

After Russia's full-scale invasion of Ukraine, the corporation promised to suspend all imports and exports of its products to and from Russia, as well as to stop all media and advertising spending. However, during the war year, Unilever Russia's profit doubled from RUB 4.8 billion (EUR 56 million) in 2021 to more than RUB 9.2 billion (EUR 108 million) last year, the NACP stressed.

In addition, in 2022, thanks to significant profits (+91%), Unilever Rus LLC managed to increase its capital to RUB 34.5 billion from RUB 25.3 billion in 2021, or up by 37%. Unilever Rus LLC paid about $50 million in taxes to the Russian budget for 2022.

The NACP indicated that Unilever said that the company's position had not changed regarding doing business in Russia, however, enterprises in Omsk, Yekaterinburg, St. Petersburg and Tula continue to operate, and offices continue to operate, ensuring the presence of brands in outlets.

"Such actions of the company indicate its reluctance to join the coalition of responsible business that has chosen the side of democracy and freedom. By financing the state budget of the Russian Federation with significant revenues, Unilever contributes to the Russian economy and, accordingly, supports the actions of the aggressor," the agency said.

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