Unilever receives approval to sell Russian assets

Consumer goods giant Unilever has secured Russian government approval to divest its assets in the country, the RBC business daily reported on Wednesday, citing unnamed sources familiar with the matter.

The decision comes amid ongoing criticism of the company’s continued presence in Russia following the ongoing war in Ukraine.

Unilever and the Russian finance ministry have declined to comment on the details of the sale. According to RBC, the assets are valued between 35-40 billion rubles ($393-$449 million). The Kremlin has been demanding a significant discount for exit deals involving companies from “unfriendly” countries.

Arnest Group, which recently acquired Heineken’s Russian assets, is reportedly interested in purchasing Unilever’s assets, according to Kommersant daily.  However, the company has not yet confirmed this.

Unilever’s decision to exit Russia marks a significant step in its efforts to minimize its contributions to the Russian state. The company has faced criticism for its continued operations in the country despite halting imports and exports and reducing media and advertising spending.

CEO Hein Schumacher has overseen several major changes at Unilever, including plans to spin off the ice cream business, lay off staff, and focus on key brands. The sale of Russian assets would be another significant move for the company.

Attribution: Reuters