Unilever’s Asset Sale in Russia

MOSCOW (Reuters) – Consumer goods giant Unilever (LON:ULVR) has received Russian government approval to sell its assets in Russia, as reported by the RBC business daily on Wednesday, citing unnamed sources familiar with the matter.

Unilever and Russia’s finance ministry declined to comment.

Unilever has faced criticism for remaining in Russia since Moscow sent troops into Ukraine in February 2022. However, it has curtailed some spending and operations.

RBC reported that Unilever’s assets in Russia were valued at around 35-40 billion roubles ($393-$449 million). In Unilever’s first-half report, published in July, it stated that as of June 30, the Russian business had net assets of around 600 million euros ($663 million), including four factories.

The Kommersant daily later reported that Arnest Group may purchase the assets, having previously acquired Heineken’s assets in Russia for one euro. Arnest did not immediately respond to a request for comment.

The Kremlin demands a discount of at least 50% on exit deals involving firms from what it calls “unfriendly” countries—those that have imposed sanctions against Russia.

The wider corporate exodus from Russia has cost foreign companies at least $107 billion in writedowns and lost revenue.

CEO Hein Schumacher told reporters in July that the company had “substantially” localised its operations in Russia over the past year, with a primary objective to minimise economic contributions to the Russian state.

A potential exit would be significant for Schumacher, who in his first year at the helm has overseen plans to spin off its ice cream business, lay off as many as 7,500 staff, and focus on 30 key brands to reverse years of underperformance.

In March 2022, Unilever, which owns brands such as Knorr soup and Dove soap, became the first major European food company to stop imports and exports in and out of Russia. It has halted all media and advertising spending there but continued to supply essential food and hygiene products made in Russia to the local population.

($1 = 89.1455 roubles)

($1 = 0.9046 euros)