The Dax group is giving up business in Russia.
(Photo: dpa)
Dusseldorf After much hesitation, Henkel ceased operations in Russia. “The implementation process is now being prepared,” the Düsseldorf-based consumer goods manufacturer announced on Tuesday against the background of the Russian war of aggression in Ukraine. The Persil producer was invested in Russia like no other Dax group. Henkel achieves five percent of its group sales there and employs 2,500 people in eleven plants. These should continue to be paid for the time being.
How expensive the exit will be for Henkel, the group did not want to announce on Tuesday: “The financial impact of the planned exit for Henkel associated with the decision cannot be quantified in more detail at this point in time.”
Despite public pressure, Henkel management had stuck with the business in Russia for a long time. CEO Carsten Knobel justified this at the general meeting: In Russia there is a risk that subsidiaries of foreign companies could be expropriated by the government in the future if they were to withdraw from the country. In this case, the Russian government would receive considerable assets. In addition, the local management could be held personally liable in the event of a withdrawal.
Henkel also argued with the well-being of the employees and the fact that they manufactured goods for daily needs. “We don’t make light-hearted decisions,” said Knobel at the time. Recently, however, more and more doubts have been heard in the company’s public statements.
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“We are also not ruling out further restricting our activities,” Henkel’s supervisory board chief Simone Bagel-Trah told the Handelsblatt a few weeks ago. Henkel “of course also includes the good reputation of our company” in the considerations. But it now seemed so endangered that Henkel announced its withdrawal from Russia.
More: Which companies are still active in Russia – and which are not.