Heineken and Philip Morris, Who Announced Withdrawal from Russia, to Maintain Local Operations

Yale University Professor Sonnenfeld's Team Tracks Companies' Withdrawal from Russian Business
Companies "Trying to Keep Promises but Facing Difficulties with Government Approvals"

As Russia's invasion of Ukraine surpasses 500 days, criticism has arisen over global companies such as Heineken, Philip Morris, and Unilever, which initially promised to withdraw their businesses from Russia but have been found to continue operations locally contrary to their commitments.

On the 10th (local time), CNN cited data from a Yale University research team led by Professor Jeff Sonnenfeld, which has been tracking the withdrawal of global companies from Russia since the outbreak of the war. The team has been monitoring and compiling data on the withdrawal and downsizing of about 1,500 companies in Russia since the invasion began in February last year.

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Following Russia's invasion of Ukraine, Western countries imposed extensive economic sanctions, and in solidarity, global companies pledged to withdraw or reduce their operations in Russia. At the time, these companies publicly announced voluntary reductions in their Russian business, considering their corporate image. However, Sonnenfeld's team pointed out that some companies have not kept their promises and continue to operate in Russia.

Professor Sonnenfeld emphasized, "Consumers who buy products from these companies are effectively fueling the Putin regime's war efforts and implicitly supporting Russian President Vladimir Putin."

A representative company maintaining its business in Russia is Heineken. According to the report, Heineken currently operates seven breweries in Russia and employs 1,800 people. The research team noted that after the war, Heineken even launched new brands in Russia, expanding its market share.

Heineken declared its withdrawal from the Russian market in March last year. Consequently, the research team initially awarded Heineken an 'A grade,' given to companies that completely sever ties with Russia. However, the team later downgraded Heineken to a 'D grade,' stating that the company only pretended to withdraw on the surface while continuing substantial operations and merely postponing planned investments.

In response to these criticisms, Heineken stated that it has found a buyer to take over its Russian operations but has yet to receive approval from Russian authorities since submitting the relevant documents in April.

Besides Heineken, CNN reported that other companies such as Mondel?z, the major confectionery company that makes Oreo, Nestl?, WeWork, Unilever, and Philip Morris, which promised to withdraw from Russia, are still maintaining their businesses there.

Mondel?z currently employs 3,000 people in Russia. Philip Morris reportedly still holds assets worth $2.5 billion, including factories in Russia, without disposing of them. Unilever initially said it would sell only essential goods but continues to sell consumer products like ice cream, and WeWork is also still operating.

Additionally, while franchise companies like McDonald's and Starbucks have withdrawn from Russia for over a year, CNN reported that TGI Friday's franchise outlets are still operating.

These companies told CNN that they are trying to fulfill their withdrawal promises but face complex situations and difficulties obtaining government approvals.

Regarding this situation, the Yale research team argued that multinational companies should continue to pressure Russia to withdraw so that the Putin regime feels the impact.

Professor Tim Calkins of Northwestern University said, "(Making a withdrawal promise) is easy to say, but one of the hardest things to actually execute," adding, "This can cause financial damage." However, unlike the early stages of the war, consumers currently do not consider this factor, and he pointed out, "I am not sure companies feel pressured to keep their promises."

This content was produced with the assistance of AI translation services.