Nestlé included in the list of international war sponsors
The National Agency on Corruption Prevention (NACP) of Ukraine has added the Swiss corporation Nestlé, which is one of the largest food producers in the world, to the list of international sponsors of war, reports the press service of the NACP.
"Despite the ongoing Russian aggression against Ukraine, Nestlé continues to operate in the aggressor state, supplying goods to its population and expanding its production base in the country," said the statement.
According to the agency, Nestlé produces instant coffee, mineral water, chocolate, ice cream, dairy products, baby food, pet food, and other products. Worldwide, the company's product line includes more than 2,000 brands. The main brands are KitKat, Nescafé, Nesquik, Nestea and others.
Nestlé's operations in Russia
As of early 2022, the Swiss corporation had seven factories in Russia.
"Even though the share of Nestlé’s revenue made in Russia is only slightly over 2% of its global revenue, the company has not yet decided to leave the market of the terrorist state. Nestlé explains this decision by citing the need to provide the Russian population with “essential products” and to take care of its employees," the National Agency on Corruption Prevention (NACP) noted.
According to the agency, Nestlé has more than 7,000 employees in Russia. Nestlé is represented through Nestlé Russia LLC. In 2021, it paid more than $25 million in taxes. However, Nestlé has not published data on its income and taxes paid for 2022.
It is known that in 2022, Nestlé imported $374 million worth of semi-finished products and raw materials to Russia, and $271 million in the first 9 months of 2023.
After the start of Russia's full-scale invasion of Ukraine, the company announced the suspension of exports and imports to Russia, except for essential goods.
"Nevertheless, as reported by Swiss media, the shelves of Russian stores are still full of their products. Among the products available are Bystrow breakfast cereals, Maggi soups and broth cubes, Purina pet food, chocolate bars, and Nespresso coffee," noted the National Agency on Corruption Prevention (NACP).
In addition, in October 2022, the company imported technical equipment into Russia under the guise of milk powder. That is, the company imports not only raw materials for necessities but also tries to covertly send technological equipment to Russia to develop its own business.
"These facts provide ample evidence that the Swiss corporation has not learned its lesson from recent history. During World War II, the company worked with both the aggressor and the victim, supplying foodstuffs to the German Army and, at the same time, exporting them to the countries of the anti-Hitler coalition," wrote NACP.
Nestlé in Ukraine
The largest segments of Nestlé's business in Ukraine are cooking (Torchyn), coffee and beverages (NESCAFE, Coffee-mate), confectionery (Nestlé and Svitoch), and fast food (Mivina).
NACP lists
The NACP is the body responsible for the compliance system in the private sector. During the compliance procedures, counterparties are subject to integrity checks, including socially responsible business conduct by OECD (Organisation for Economic Co-operation and Development) standards.
The list of "International Sponsors of War" is a reputational tool for achieving the integrity of supply chains in the international dimension, for the exit of international business from Russia, and thus for reducing the financial and technological capacity of the terrorist country.
At the same time, in early October, the NACP removed Hungary's OTP Bank from the list of international war sponsors. This happened after Hungary blocked military aid to Ukraine at the EU level.
According to data collected by the Kyiv School of Economics, more than half of the 1,871 businesses owned by European companies in Russia before the war are still operating in the country. Among them are Italian UniCredit, Austrian Raiffeisen, Swiss Nestlé, and British Unilever.