Unilever plans to continue making ice cream in Russia, even after separating this division from the rest of the business. The FMCG giant announced its intention to split its ice cream business to create a more focused and flexible standalone entity. This move is expected to result in the assets being demerged into a listed company, according to reports from media outlets such as The Telegraph.
Despite facing pressure from the public to withdraw operations in Russia due to its invasion of Ukraine, Unilever reportedly will not include its Russian ice cream division in the demerger. The company has been listed as one of the “sponsors of war” by the National Security and Defense Council of Ukraine, citing a significant increase in profits from its Russian operations.
In response to discussions about selling the business, Unilever’s chief business operations and supply chain officer emphasized the importance of not abandoning their people in Russia. The company has implemented strict measures, including halting capital flows and trade activities, in response to the conflict. Unilever is cautious about potential repercussions from the Russian government if they were to close or downsize their operations in the country.
As the situation unfolds, Unilever has not yet provided a definitive statement regarding their decision to retain the ice cream business in Russia post-demerger.
