Moscow Reportedly Approves Sale of Unilever Russia Subsidiary

Consumer goods giant Unilever has received approval from the Russian government to sell its assets in the country, reported Reuters citing RBC business daily on September 5.

Both Unilever and Russia's finance ministry have declined to comment on the matter.

Unilever has faced criticism for its decision to stay in Russia following Moscow's invasion of Ukraine in February 2022, although it has scaled back some of its spending and operations.

RBC reported that Unilever's assets in Russia are valued between 35-40 billion roubles ($393-$449 million). In its first-half report released in July, Unilever stated that as of June 30, its Russian business had net assets of approximately 600 million euros ($663 million), which includes four factories.

The Kremlin has demanded a discount of at least 50% on exit deals for firms from "unfriendly" countries—those that have imposed sanctions on Russia.

The broader exodus of foreign companies from Russia has resulted in at least $107 billion in writedowns and lost revenue.

In March 2022, Unilever, known for brands like Knorr and Dove, became the first major European food company to cease both imports to and exports from Russia. While the company has stopped all media and advertising spending in Russia, it has continued to provide essential food and hygiene products manufactured in the country.

CEO Hein Schumacher noted in July that the company had "substantially" localized its operations in Russia over the past year, emphasizing that its primary goal was to minimize financial contributions to the Russian state.