The renowned manufacturer of Dove soap and Cornetto ice cream, Unilever, has justified its continuation of operations in Russia, over a year since the nation's incursion into Ukraine.
Unilever claimed that leaving Russia is a complicated process, indicating that the Russian government would assume control of its operations in case of withdrawal.
The statement came on the heels of a report by an activist group that pegged the company's annual economic contribution to Russia at approximately £579 million.
The Moral Rating Agency (MRA) levelled accusations at Unilever, arguing that it indirectly supported Russia's aggressive actions.
Unilever's focus on its financial performance has been a shield, but it needs to confront the fact that their profits indirectly fund the military actions of Putin," Mark Dixon, MRA founder, stated.
Numerous multinational corporations, such as Apple and Levi's, exited Russia following its unlawful annexation of Ukraine last year due to ethical considerations and sanction-imposed operational difficulties.
However, some companies like the American consumer goods behemoth Procter & Gamble are still maintaining limited operations in Russia.
Unilever, recognized for UK products like Marmite and PG Tips, stated that it has suspended all import and export activities with Russia and halted all advertising in the country.
The company asserts it only markets "necessary" goods in Russia, like daily food and hygiene products.
The MRA countered that Unilever's production facilities in Russia continue to produce and distribute a majority of their original products.
The MRA explained that its calculations included Unilever's total annual contribution to the Russian government, alongside expenditure on local suppliers, workforce, rent, technology and other costs.
The group based its calculations on Unilever's 2022 Annual Report, where the company acknowledged that its Russian operations constituted 1.4% of its total turnover.
In response to inquiries, Unilever referred to its February statement: "We comprehend the calls for Unilever to withdraw from Russia. Our intention is not to safeguard or manage our Russian operations. Yet, for companies like Unilever with substantial assets in Russia, withdrawal isn't simple."
The multinational, which employs roughly 3,000 individuals in Russia, expressed concern that should it leave, the Russian government would seize control of its brands.
Unilever also stated that it had not identified a method to divest its operations that would prevent any additional benefits to the Russian state while ensuring employee safety.
According to the company, although there are no "ideal" options, operating under "stringent limitations" appeared to be the most suitable course of action given the circumstances.
Earlier this week, Shell faced backlash for continuing to trade Russian gas over a year after declaring its exit from the Russian energy market.
Shell responded that these trades were in compliance with existing "long-term contractual commitments" and did not infract any laws or sanctions.