New conscripts of the Russian army take part in a ceremony in front of the Holy Trinity Cathedral on May 23, 2023, before their departure for garrisons in St. Petersburg.
Olga Maltseva | Afp | Getty Images
The consumer goods giant Unilever has confirmed that it will comply with legislation that could lead to deporting its employees in Russia war in Ukraine.
IN letter to a campaign by the B4Ukraine group on July 11, 2023 and published by the BBC on Sunday, director of business operations and supply chain Reginaldo Ecclissato notes a Russian law that requires companies to “authorize the conscription of employees if called upon” and says Unilever will “always comply with all laws of the countries in which we operate”.
The legislation applies to holders of Russian citizenship.
Unilever confirmed the veracity of the letter to CNBC and declined to provide further comment.
The company’s wide range of brands includes Ben & Jerry’s, Dove, Knorr, Cif, Domestos, Magnum, Cornetto and Vaseline. In Russia, it has approximately 3,000 employees who work in four production plants and one headquarters. Among the products it sells in Russia are personal and hygiene products and ice cream.
It has faced criticism for its decision to continue doing business in Russia amid international sanctions and the withdrawal of many companies following the 2022 invasion of Ukraine.
Ecclissato said in the letter that Unilever faces three options for its operations in Russia. One was the closure of all Russian operations, after which he said Unilever’s business and brands in the country would be “owned by – and then operated by – the Russian state”. The second was the sale of the business, which he said would probably also benefit the state. The third, adopted by Unilever, continued to run the business with restrictions in place since March.
“To be clear, none of these options are desirable. However, we believe the third option remains the best option, both to avoid the risk of our business ending up in the hands of the Russian state, either directly or indirectly, and to help protect our people. We will, of course, continue to monitor this position closely,” he wrote.
Dove, a Unilever brand, is seen in a store in New York, March 24, 2022.
Andrew Kelly | Reuters
Since the invasion, Unilever reports that it has halted all capital flows into and out of the country and halted imports and exports of its products, as well as halted media and advertising spending.
Ecclissato said the company saw a 15% drop in sales volume in Russia last year, but turnover increased due to rising prices and a stronger ruble. He said the company paid 3.8 billion rubles ($42.06 million) in taxes in 2022.
The letter is in response to a series of questions from the B4Ukraine coalition, which urged Unilever to immediately cease all operations in Russia and exit the market. He asked for a statement on whether the company had received requests to hire employees and how it would respond to them, among other things.
Ecclissato said Unilever operates its business in Russia “in accordance with our global principles, including the safety and well-being of our employees.” He did not respond to B4Ukraine’s question whether any employees were drafted or contacted about the draft.
A spokesperson for Unilever he said BBC that any employee who was called off will not continue to be paid by the company.
