Business news from Ukraine

Ukrainian National Agency for Prevention of Corruption included Procter&Gamble in the list of international sponsors of war

The National Agency for Prevention of Corruption (NAPK) has put the American corporation Procter&Gamble (P&G) on the list of international sponsors of war, its website says.
“Unfortunately, due to the low moral threshold, hundreds of foreign companies remain operating in the Russian market, thereby financing the army and military-industrial complex of the aggressor state. Among the companies we know, besides P&G, there are already OpenWay Group, Danieli, TMS Tankers Ltd, Minerva Marine Inc., Thenamaris Ships Management, Delta Tankers Ltd, Dynacom Tankers Management Ltd. eKassir, Liberian International Ship & Corporate Registry and Bonduelle. All information about their activities is transmitted to the international company LSEG and is included in the database World-Check to protect the international financial industry from the sponsors of the Russian war”, – the press service quotes the words of the NAPC chairman Alexander Novikov.
The reason for inclusion in the list of sponsors of war was the fact that, working in Russia, the company pays taxes to the Russian state budget and contributes to the mobilization measures.
In March 2022 P&G announced about reduction of assortment in the Russian market and promised to leave only products for health and hygiene. In August it was reported that it was no longer investing in business development in Russia. However, P&G is developing its business in Russia, in particular a household chemicals factory, the world’s largest producer of P&G detergents, and a plant making razor blades and shaving irons for Gillette are still operating in Russia. The company provides jobs for about 2,500 Russians.
P&G owns such subsidiaries and brands as Gillette, Fairy, Tide, Ariel, Lenor, Mr. Proper, Pampers, Always, Head & Shoulders, Pantene, Old Spice, Hugo Boss, Max Factor and others.
In March 2022, after announcing the reduction of its presence on the Russian market, P&G raised prices for its own products in Russia by 40%, which almost offset the loss of revenue from the reduction of the brand portfolio. According to the company’s 2022 report, this price hike boosted the company’s organic sales in Russia.
In addition, the company promotes mobilization, because under new Russian law, corporations operating in Russia are forced to participate in mobilization activities, assist in recruiting employees to the army and finance their military equipment.

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