The British consumer-goods giant had remained in the country after a mass corporate exodus post-2022 over the Ukraine conflict

British consumer-goods giant Unilever has completed its exit from Russia, the company said in a statement on Thursday. The group had come under intense criticism for having remained in Russia despite the mass corporate exodus following the outbreak of the Ukraine conflict in 2022 and ensuing Western sanctions.

Unilever sold all its business in Russia to Arnest Group, a domestic manufacturer of perfume, cosmetics, and household products, the company said in a statement. Its business in Belarus was also included in the sale, it added.

”The completion of the sale ends Unilever Russia’s presence in the country,” said CEO Hein Schumacher.

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The company did not disclose the terms of the deal. According to divestment rules introduced by the Russian government last year, firms exiting Russia need to obtain government permission for the sale and are required to sell their assets at a 50% discount and pay a 10-15% exit tax.

The Financial Times (FT) has reported, however, that the company’s assets, worth an estimated €600 million ($657 million) were sold for €520 million ($569 million).

Unilever’s Russian operations included four factories and accounted for approximately 1% of the group’s turnover and net profit in 2023, noted FT.

Arnest Group, which is owned by Russian industrialist Aleksey Sagal, has previously acquired the local assets of US can maker Ball Corp, Dutch brewer Heineken and Swedish cosmetics group Oriflame.

READ MORE: Western firms ‘backtracking’ on Russia exit plans – FT

Unilever manufactures the Fairy and Domestos cleaning-liquid brands, Dove soap, Ben & Jerry’s ice cream, and some 400 other brands of food and household chemicals. The group stopped exports and imports to and from Russia in March 2022, and halted investment, advertising, and further projects in the country. However, it continued to manufacture and sell what it described as “vital food and hygiene products” in Russia, a decision that saw it branded “an international sponsor of war” by the Ukrainian government in 2023.

Unilever had previously given no indication it planned to exit the Russian market. In July 2023, the company stated that it chose not to withdraw and see its operations nationalized, or to sell its Russian division. Media reports claimed in September that the UK-based giant had made a major U-turn and decided to sell its Russian assets.

READ MORE: Russia exits have cost Western firms over $100 billion – Reuters

Reuters estimated in March that the exit from Russia has cost foreign firms more than $107 billion in writedowns and lost revenue since 2022.