Ukraine adds British corporation Unilever to International Sponsors of War list

This was reported by  The National Agency on Corruption Prevention.

This company is a world leader in the sale of products and household chemicals, with more than 400 brands produced at 280 enterprises. Unilever supports the Russian economy by paying significant taxes to the state budget, thereby contributing to the continuation of Russia's war against Ukraine.

Domestos, Axe, Rexona, Dove, Calve, Rama, Brooke Bond, Lipton, Crème Bonjour, CIF, Knorr, Sunsilk, Timotei, CLEAR, Chystaya Liniya are still present in Russia.  

“Unilever cannot say it is opposed to the war while at the same time contributing to Putin’s war machine. 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” noted the Head of the National Agency on Corruption Prevention Oleksandr Novikov.

The British corporation has more than 3,000 employees in Russia. In 2022, 1.4% of the company's turnover and 2% of its net profit came from Russian business. The company's net profit increased by 24.9% compared to 2021 and amounted to EUR 8.03 billion, and the income increased to EUR 60.1 billion (+14.5%). Unilever's sales grew in all categories, with the largest increase in cosmetics sales (+20.8%).

Following Russia's full-scale invasion of Ukraine, the company promised to stop importing and exporting its products to and from Russia, as well as to stop all media and advertising spending. However, during the year of war, Unilever Russia's profits doubled from RUB 4.8 billion (EUR 56 million) in 2021 to over RUB 9.2 billion (EUR 108 million) in 2022. Thanks to this significant profit (+91%), Unilever Russia increased its capital by +37% to RUB 34.5 billion in 2022 from RUB 25.3 billion in 2021, and accordingly paid about USD 50 million in taxes to the Russian budget in 2022.

"Unilever claimed that the company's position on doing business in Russia has not changed, but its factories in Omsk, Yekaterinburg, St. Petersburg and Tula continue to operate, and its offices continue to operate, ensuring the presence of brands at points of sale. Such actions of the company indicate its unwillingness to join the coalition of honest and responsible businesses that have chosen the side of democracy and freedom. By financing the Russian state budget with significant revenues, Unilever contributes to the Russian economy and, accordingly, supports the actions of the aggressor," the statement said.

NACP’s list of war sponsors

As stated on the NACP website, the purpose of being included in the list of international war sponsors is to reduce Russia's resources for waging war through non-sanctioned instruments (without involving the resources of allied countries). The list also serves to draw attention in the global media space to the company declared an "international war sponsor" and to the war in general. 

To be excluded from the register, a company must: 

• withdraw from the Russian market or cease doing business with Russia; 
• or provide a realistic, achievable in the short term exit plan, together with written and public guarantees to ensure its implementation by a specified date;
• or cease all business operations in Russia, leaving only a formal presence there due to the difficulties of exit.

The NACP added 24,000 people to the list of sponsors and those involved in Russia's war in Ukraine.

On June 16, the National Agency for the Prevention of Corruption for the first time removed the first company from the list of international sponsors of the war - Irish Peninsula Petroleum Limited.

As of June 16, the NACP had added 29 companies to the list of international sponsors of the war. Among them are, in particular, Chinese Xiaomi and Great Wall, Hungarian OTP Bank, Austrian Raiffeisen Bank International, Bonduelle, French chain Auchan, German Metro and other companies.

On June 23, the NACP added Chinese car manufacturer Geely to the list of international sponsors of the war.