Persil, Schwarzkopf, Co
Henkel is leaving Russia after all
04/19/2022, 12:50 p.m
Many corporations are giving up their business in Russia because of the war of aggression. Henkel hesitated with this step for a long time and only stopped its investments there at first. Now the company’s management is changing its stance. The financial consequences are unclear, it is said.
The consumer goods group Henkel is withdrawing completely from Russia after a long period of hesitation. “Against the background of the current developments in the war in Ukraine, Henkel has decided to give up its business in Russia,” said the company behind brands such as Persil, Pritt, Schwarzkopf and Fa. The implementation is now being prepared. Meanwhile, the approximately 2,500 Henkel employees in Russia would continue to be employed and paid.
“Henkel condemns the Russian war of aggression against Ukraine and the violence against innocent civilians,” said CEO Carsten Knobel. Henkel has been active in Russia for more than 30 years and operates eleven production sites there. The group recently generated sales of around one billion euros in Russia.
The financial impact of the planned exit from Russia “cannot be further quantified at this point in time,” Henkel said. Competitor Beiersdorf said last week that business in Russia had been significantly reduced, but that the group wanted to remain there with products for everyday consumer needs.
After the attack on Ukraine, Henkel stopped all investments in Russia. The group decided at the end of February that advertising and sponsorship would also be discontinued. However, the Düsseldorf-based company has continued to deliver everyday items such as household and personal care products.
At the Annual General Meeting in early April, the Henkel management had declared that they wanted to continue business in Russia with restrictions. Knobel had defended the Russia strategy, among other things, that foreign companies could be expropriated by the government in the future and their local managers could be held liable if they went out of business.