Unilever faces calls to disclose Russian tax payments amid backlash over refusal to exit


Hannah Boland
Sat, 30 December 2023

Unilever Russia

Unilever is facing calls to be more transparent over its tax arrangement in Russia amid fresh scrutiny over its decision to remain in the country.

Campaigners are urging the Dove and Marmite maker to reveal how much it has paid to the Kremlin in the past year, saying it is the least it can do given its failure to abandon Russia.

It comes after the Russian government last month announced plans to remove requirements that force companies to publish information publicly.


President Vladimir Putin signed an order allowing certain businesses to “have the right to independently determine the content or scope of information to be disclosed or submitted”.

It is not yet clear which companies the order will affect, including Unilever.

However, the shift towards greater secrecy has sparked concerns among tax experts that it could become increasingly difficult to track how much companies are contributing to the Kremlin.

This has led to heightened scrutiny of the consumer goods giant’s tax payments given it is one of the largest Western firms still operating in Russia.

Companies such as Coca-Cola and McDonald’s chose to exit in the wake of the invasion of Ukraine, but Unilever retained its presence.

Unilever in 2022 condemned the war in Ukraine as a “brutal and senseless act by the Russian state” and suspended imports and exports into Russia.

However, the company – which has factories and employees in Russia – decided to continue selling what it deems “everyday essential food”, including its range of ice cream.

While Unilever typically publishes its own global tax report, there have been disparities between its figures and analyst estimates, which are compiled using Russian company data.

In its latest global tax report, Unilever says it paid 3.8bn roubles, or about £30m, in taxes in Russia in 2022.

It says it collected another 4.5bn roubles (around £39.5m) from employees and customers on behalf of the Russian government to account for things such as VAT and sales taxes.

However, experts at the Kyiv School of Economics (KSE) put Unilever’s total tax contributions in Russia at least $331m for 2022, alleging the company’s figures do not include all tax contributions.

KSE says it calculates its figures using local cashflow reports and official government data sources.

Valeriia Voshchevska, a campaigner with the Ukraine Solidarity Project, said Unilever needed to be transparent over the costs of staying in Russia: “They seem to think they can just sit this out, but every day the war goes on, Unilever’s complicity in it deepens.

“It’s an utter failure of leadership, and history won’t judge them kindly unless they do the right thing now.

“Unilever’s continued operations in Russia have seen the company fuel the war in Ukraine by paying millions into Putin’s war chest.”

Activists protested Unilever's continued presence in Russia outside its London HQ on Mr Schumacher’s first day as chief executive - Chris J Ratcliffe

Unilever has already been added to Ukraine’s list of international war sponsors over its decision to keep operating in Russia.

However, the company has said that staying in Russia to sell food and hygiene products is “the best option, both to avoid the risk of our business ending up in the hands of the Russian state, either directly or indirectly, and to help protect our people”.

The company, which has for years prided itself on its “social purpose”, has claimed that there is a risk that by selling the business, the Kremlin could potentially “gain further benefit”.

This position has come under scrutiny after it admitted it would allow thousands of its Russian workers to be conscripted into the Ukraine war.

After this position was revealed earlier this year, Unilever said it “always complies with all the laws of the countries we operate in”.

In October, new chief executive Hein Schumacher said Unilever was still considering all options. However, he added: “It is clear that the containment actions that we have taken minimise Unilever’s economic contribution to the Russian state.”

It is the latest in a series of ethical wrangles for Unilever.

In December, the UK competition watchdog announced it was launching an investigation into claims the consumer goods giant was involved in “greenwashing”.

This involves claims that shoppers have been misled about how environmentally friendly their products are.

Unilever responded to the inquiry by saying it was “surprised and disappointed” with the announcement, as it rebutted the claims.

When asked about its tax arrangement in Russia, Unilever declined to comment.