Unilever has been named as an international sponsor of war by the Ukrainian government after the Marmite, Dove and Domestos owner became subject to a law in Russia obliging all large companies operating in the country to contribute directly to its war effort.
The move came as campaigners called on Unilever’s new boss, Hein Schumacher, who started work this weekend, to withdraw from Russia, where its local business continues to sell “essential” products from shampoo to ice-cream, after evidence emerged that it paid Moscow $331m in taxes last year.
The Ukraine Solidarity Project (USP) on Monday erected a giant billboard outside the Anglo-Dutch consumer group’s London headquarters featuring pictures of wounded Ukrainian soldiers – posing in the style of the Dove beauty brand’s advertisements – and the slogan: “Helping to fund Russia’s war in Ukraine.”
Unilever was placed on the sponsors of war list on Monday alongside companies including Procter & Gamble (P&G), the world’s largest manufacturer of household chemicals and personal care products, and the French supermarket group Leroy Merlin.
It is thought that a new law in Russia could lead to the conscription of Unilever’s 3,000-strong workforce in Russia across its four manufacturing sites and head office.
Valeriia Voshchevska, a spokesperson for USP, said: “Unilever is contributing hundreds of millions in tax revenues to a state which is killing civilians and funding a mercenary group about to be designated a terrorist organisation in the UK.
“It risks its staff and resources being mobilised into Putin’s machine. Some of the world’s biggest companies have already left Russia. It’s possible – after 16 months of war – that the time for excuses has passed.”
Unilever Rus, the group’s local Russian business with registered offices in Moscow and Omsk, doubled profits to 9.2bn roubles last year, according to the Dutch investigative group Follow the Money, and increased advertising spend by 10% to 21.7bn roubles.
Oleh, 26, from Kyiv, had both legs amputated after an explosion on a Russian anti-tank mine while fighting in eastern Ukraine. He featured on the USP billboard and urged Unilever to withdraw from the Russian market. “Many civilians are being killed, children are being killed and the Russian military is torturing Ukrainian civilians. You’re paying taxes to the aggressor country and thus financing terrorism,” he said.
Unilever has previously said it ceased all imports and exports of its products into and out of Russia in March last year and has stopped all media and advertising spend and capital flows.
Its outgoing boss, Alan Jope, has said the amount of goods that Unilever sells in Russia was “down significantly by double digits” and the apparent increase in sales, profit and advertising spend was the result of inflation and exchange rate changes.
Unilever said: “We continue to supply our everyday food and hygiene products made in Russia to people in the country.” It is understood this includes soap and shampoo but also ice-creams including Magnum and Cornetto.
“We understand why there are calls for Unilever to leave Russia,” it said on Monday. “We also want to be clear that we are not trying to protect or manage our business in Russia. However, for companies like Unilever, which have a significant physical presence in the country, exiting is not straightforward.”
The company said that if it were to abandon its business and brands in Russia, “they would be appropriated – and then operated – by the Russian state”. Unilever said it had not been able to find a way to sell the business that “avoids the Russian state potentially gaining further benefit, and which safeguards our people”. It said in that light, continuing to run the business with “strict constraints” was the best option.
• This article was amended on 5 July 2023. An earlier version referred to “tea” as among the products sold by Unilever, which is no longer the case.
