Ben & Jerry’s Parent Company Says It Will Allow Russia Employees to Be Conscripted

Ben & Jerry’s ice cream in a grocery store in Washington on July 10, 2023. (Madalina Vasiliu/The Epoch Times)

Unilever, the parent company of Ben & Jerry’s, has agreed to comply with Russian conscript law, opening up the possibility that thousands of its employees in Russia could be sent to the war in Ukraine if called up.

In a letter to B4Ukraine, a global coalition of civil society organizations calling for foreign companies to leave the Russian market, Unilever said it was aware of the Russian law “requiring any company operating in Russia to permit the conscription of employees should they be called.” The consumer goods giant said it will “always comply with all the laws of the countries we operate in.”

“We continue to run our business in Russia in alignment with our global principles, including the safety and wellbeing of our employees,” the letter says.

Unilever—an Anglo-Dutch multinational company that owns many well-known brands such as Cif, Domestos, Dove, Magnum, and Vaseline—has about 3,000 employees in Russia, working across four manufacturing sites and a head office.

Unilever is among some companies that have faced criticisms over their decisions to continue their business operations in Russia, despite Western sanctions and the pullout of many foreign companies, following the Kremlin’s invasion of Ukraine in February 2022.

Valeriia Voshchevska, a Ukrainian activist and campaigner, took to Twitter on July 23 to criticize Unilever’s decision to allow its Russian employees to be conscripted.

“If this is protecting your workers, I’d hate to see what putting them in harm’s way looks like. And what about innocent Ukrainian civilians—does Unilever not think they deserve protecting too?” Ms. Voshchevska wrote.

Letter

The letter, dated July 11, was written by Reginaldo Ecclissato, Unilever’s chief business operations and supply chain officer, in response to a series of questions from B4Ukraine. He reiterated Unilever’s stance on the war, saying it “absolutely condemns the war in Ukraine as a brutal, senseless act by the Russian state.”

“We continue to join the international community in calling for stability and peace in the region,” the letter says.

Mr. Ecclissato also noted that Unilever paid 3.8 billion rubles (about $40 million) in tax to Russian authorities in 2022, which was “in line with the total tax” paid in 2021. The company experienced a 15 percent decline in sales volumes in Russia in 2022, but sales turnover increased due to inflation and a stronger ruble, he added.

As for whether Unilever “has considered fully exiting Russia,” Mr. Ecclissato said, “Exiting is not straightforward.”

Unilever has reviewed three options, according to the letter. One was closing down its business operations in Russia, which means that its business and brands would be “appropriated–and then operated–by the Russian state.” Another was selling its business, but Mr. Ecclissato pointed out that a solution has not been found that “avoids the Russian state potentially gaining further benefit.”

The company has adopted the third option, allowing its business in Russia to run with constraints implemented since March 2022.

That month, Unilever announced that it had halted imports and exports of its products into and out of Russia, and would stop investing any further capital and all media and advertising expenditure in the country.

“To be clear, none of these options are desirable,” the letter says. “Nevertheless, we believe the third remains 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. We will of course continue to keep this position under close review.”

British Conservative MP Alicia Kearns, chair of the Foreign Affairs Committee, took to Twitter on July 23, asking Ben and Jerry’s for its opinion on Unilever’s conscription decision. She also highlighted the ice cream company’s remarks last year, weeks before Russia invaded Ukraine, when it urged President Joe Biden not to send more U.S. troops to Europe, saying he risked fanning “the flame of war.”

“What do you make of your parent company @Unilever allowing the conscription of Unilever staff by [Russia] to participate in war crimes in Ukraine? Ms. Kearns wrote. “Silent so far.”

The Epoch Times has contacted Ben & Jerry’s for comment.

Quarterly Sales

On July 25, Unilever reported (pdf) a 7.9 percent rise in underlying second-quarter sales, topping analysts’ average forecast of 6.4 percent. Underlying price growth for the second quarter was 8.2 percent, beating analysts’ predictions of 7.7 percent.

“My early immersion in the business has confirmed my belief in Unilever’s strong fundamentals,” said new CEO Hein Schumacher, who replaced Alan Jope in January, according to a statement. “This opportunity to step up our performance and unlock our full potential makes it an exciting time to lead Unilever. I look forward to sharing further details when we report our Q3 results in October.”

Unilever also reported that its business in Russia represented 1.2 percent of its global turnover and 1.5 percent of its net profit for the first six months of this year.

Ukraine Solidarity Project, a group of veterans and international activists, took to Twitter on Tuesday to highlight the small percentage of Unilever’s turnover in Russia.

“So why won’t they leave [Russia]?” the group asked.

Earlier this month, Ukraine Solidarity Project announced that it had installed a giant billboard outside of Unilever’s headquarters in London to send a message to Mr. Schumacher.

“Pull out of Russia. Paying taxes in Russia has consequences on people’s lives. Lives of people like these brave men injured defending Ukraine,” the group wrote on Twitter with a photo of the billboard.