British consumer goods firm Unilever said has completed the sale of its Russian business to Arnest Group, a local manufacturer of perfume, cosmetics, and household products, for an undisclosed amount.
Unilever, owner of brands including Dove soap and Hellmann's mayonnaise, said the sale includes all of its business and four factories in Russia as well as its business in Belarus.
The terms of the transaction were not disclosed.
In addition to the Russian exit, Unilever's CEO Hein Schumacher has, in his first year at the helm, overseen plans to spin off the group's ice cream business, lay off up to 7,500 staff, and focus on 30 key brands to reverse years of underperformance.
Russian Business
Unilever's continued presence in Russia after Moscow's invasion of Ukraine in February 2022 has been criticised by campaigners and Ukraine's government, though in March 2022 it was the first major European food company to stop imports into and exports out of Russia.
B4Ukraine, a coalition of civil society groups seeking to compel Western companies to sever ties with Russia, welcomed Unilever's decision to sell its assets and called for other global companies to do the same.
Last month, the RBC business daily reported that Unilever had received Russian government approval to sell assets valued at around 35-40 billion roubles ($359.5-$410.9 million).
'Complex Work'
"Over the past year, we have been carefully preparing the Unilever Russia business for a potential sale. This work has been very complex, and has involved separating IT platforms and supply chains, as well as migrating brands to Cyrillic," Schumacher said in a statement, referring to the Russian alphabet.
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.
Arnest Group did not immediately respond to a request for comment.
The exodus of firms from Russia has cost foreign companies more than $107 billion in writedowns and lost revenues, according to a Reuters analysis in March.
Danone earlier this year said it had received regulatory approvals to dispose off its Russian assets, taking a loss of $1.3 billion.
Unilever is expected to publish its third-quarter trading statement on 24 October.
