Unilever has received at least 200 million euros in payments from Russia in the past two years, despite promising not to make any more money from Russian activities. This is evident from a study by RTL Nieuws published on Thursday. After the start of the Russian invasion, Unilever announced that it would not leave Russia, but promised that no money would flow from the Russian branch to its headquarters.
Shortly after the Russian invasion, Unilever CEO Alan Jope also said that the company would no longer invest capital in Russia. Only “everyday essential nutritional and hygiene products” would remain available. Now, according to RTL News, it appears that Unilever will earn 181 million euros in 2023 by having the Russian branch pay for the use of brands and recipes such as Knorr and Magnum. This would have amounted to 50 million euros in 2022.
Unilever confirms in a response to RTL News that part of the intellectual property, Unilever brands such as frozen products Inmarko and cosmetics manufacturer Kalina, was transferred to the Russian company last year for a fee. According to Unilever, this is necessary to set the Russian subsidiary apart. It is unclear whether intellectual property payments for international brands will stop from now on. Unilever also sells well-known brands such as Ax, Dove and Magnum in Russia, but the Russian branch does not yet have the intellectual property for these.
The journalistic platform Follow the Money reported last year, based on Russian Chamber of Commerce figures, that Unilever’s profit in Russia had doubled in 2022 compared to 2021: 110 million euros compared to 57 million euros. Advertising expenditure also increased from 234 million euros to 259 million euros.
To share
Email the editor
