Unilever exits Russia amid Ukraine invasion backlash

Unilever has decided to exit its Russian operations after facing significant backlash for its continued presence in the country following the invasion of Ukraine over two years ago. The company, known for brands like Magnum and Dove, had previously sparked outrage for not withdrawing from Russia, which led to accusations of being an 'international sponsor of war' by the Ukrainian government. Reports indicate that Unilever has reached an agreement to sell its Russian business to the chemicals group Arnest, with the deal estimated to be worth between £300 million and £334 million, reflecting a 50% discount due to Russian asset sale laws. The sale is currently awaiting approval from the Kremlin's subcommittee on foreign investments, although sources suggest that the government is prepared to accept the deal. Unilever's leadership, under CEO Hein Schumacher, had maintained that remaining in Russia was the 'last bad option,' fearing that a withdrawal could result in the business falling into local hands. Despite halting advertising and imports, the company has been criticized for indirectly supporting the Russian economy through business taxes. Campaigners have highlighted the financial implications of Unilever's operations in Russia, suggesting that the company has been contributing significantly to the war effort through its continued presence. The founder of the Moral Ratings Agency emphasized that while the exit is a positive step, it does not absolve Unilever of its previous actions over the past two and a half years. As Western firms continue to exit Russia, the situation underscores the complex ethical considerations businesses face in conflict zones, balancing economic interests with moral responsibilities. Unilever's decision marks a significant shift in its operational strategy amid ongoing geopolitical tensions.