That is why Unilever stays in Russia

By: Trademagazin Date: 2023. 07. 05. 11:37

Companies with a strong presence in Russia defended their decision not to leave the Russian market. Unilever also claims that it is staying in Russia because, in the event of a complete withdrawal, the Russian state would take over the company’s activities.

Many Western companies have closed their operations in Russia because of the sanctions and the war. Unilever has stopped advertising in Russia, but continues to sell its products and contribute to the Russian economy. The company is concerned that the withdrawal would result in the Russian state taking over the operation of its brands. Unilever provided donations to Ukraine and no solution was found to prevent the Russian state from gaining further benefits.

Shell has also been criticized for continuing to trade in Russian gas, even though it had previously promised to withdraw. The company says they are bound by long-term contracts to trade and it does not violate laws or sanctions.

The companies are therefore in a difficult situation, because the exit may have negative consequences, such as expropriation of the activities by the Russian state.