Unilever, the multinational consumer goods company known for brands like Dove and Hellmann’s, announced on Thursday that it has completed the sale of its Russian operations to Arnest Group, a local manufacturer of cosmetics, perfumes, and household products. The deal includes Unilever’s entire business in Russia, four production facilities, and its business interests in Belarus. The financial terms of the sale remain undisclosed.
The decision to sell follows significant criticism of Unilever’s continued presence in Russia after the country’s invasion of Ukraine in February 2022. Although Unilever had ceased imports and exports to Russia shortly after the invasion, its full withdrawal from the market was a complex process. This sale marks the culmination of over a year of preparation, involving the separation of supply chains, IT systems, and adapting brand names to the Cyrillic alphabet.
Unilever’s CEO, Hein Schumacher, in his first year leading the company, has made several major changes aimed at restructuring the business and boosting performance. In addition to the sale of the Russian operations, Schumacher is overseeing plans to spin off the company’s ice cream division, lay off up to 7,500 employees, and focus the company’s efforts on 30 key brands.
B4Ukraine, a coalition of civil society groups pushing for Western companies to cut ties with Russia, applauded Unilever’s decision, urging other global corporations to follow suit. The Russian government has required foreign companies from “unfriendly” nations—those that have imposed sanctions on Russia—to sell their assets at a discount of at least 50%.
Unilever joins other major corporations, like Danone, which earlier this year also divested from its Russian assets, taking a $1.3 billion financial loss. A Reuters analysis in March estimated that foreign companies have lost over $107 billion in writedowns and lost revenue due to their exits from the Russian market.