Unilever, the British fast-moving consumer goods (FMCG) giant, has officially completed its exit from the Russian market. On October 10, 2024, the company announced the sale of its Russian subsidiary to Arnest Group, a local producer of cosmetics, perfumes, and household products. This deal also includes Unilever’s business operations in Belarus.

This decision comes in response to increasing criticism over Unilever’s continued presence in Russia after the invasion of Ukraine in 2022.

The terms of the sale were not disclosed, but according to Reuters, the Financial Times reported the sale was valued at $568.41 million.

The sale, which has been in the works for months, encompasses all four of Unilever’s factories in Russia and the transfer of major global brands such as Dove, Rexona, and Lipton.

While Unilever had initially suspended imports, exports, and advertising in Russia following the conflict, it did not fully cease operations and continued to sell its products domestically.

But continuing its operations in Russia drew heavy criticism from human rights groups, activists, and governments. They were seen as indirectly contributing to Russia’s economy, and Unilever was even placed on Ukraine’s “International Sponsors of War” list.

Moreover, Unilever had been facing sustained pressure from British media and civil society groups, including the Ukraine Solidarity Project, for its continued operations in Russia—even though the company had condemned the invasion of Ukraine.

In July 2023, Unilever CEO Hein Schumacher committed to reviewing its Russian operations with “fresh eyes.” Once the sale was complete, Schumacher called it a “very complex process,” noting the extensive IT system separations, brand migrations, and logistical hurdles involved.

Nataliya Popovych, the co-founder of the B4Ukraine coalition, welcomed Unilever’s decision to exit Russia, stating, “Depriving the Kremlin from additional sources of war financing is critical… Unilever’s case clearly shows that – given enough political will – a clean exit from Russia is possible.”

The geopolitical, ethical, and reputational challenges of continuing business in Russia are prompting many companies to reevaluate their presence in the region.

Moreover, there’s a growing trend of Western multinationals pulling out of the Russian market, where firms such as McDonald’s and Starbucks have already left the country.

The sale to Arnest Group, a major player in the Russian FMCG market, signals a shift in domestic control of formerly international brands. As international companies continue to depart, Russia’s economy is further isolated from foreign influence.