Mondelez CEO Defends Continued Operations in Russia Despite Criticism
The chief executive of Mondelez International has defended the company’s decision to continue operating in Russia following the country’s invasion of Ukraine, while acknowledging concerns that the business contributes tax revenue to the Russian government.
Dirk Van de Put, CEO of the global food and confectionery company behind brands such as Cadbury, Toblerone, Philadelphia and Ritz, said the decision to remain in Russia was made to protect employees and company assets in the country.
Speaking about the issue, Van de Put admitted he was uncomfortable with the fact that taxes paid by the company in Russia ultimately contribute to government revenues during the ongoing conflict.
However, he argued that withdrawing from the market could have resulted in the seizure of Mondelez’s local operations by Russian authorities, potentially creating an even larger source of revenue for the state.
According to the company, Mondelez halted new investments in Russia and suspended advertising activities after the invasion began in 2022. Despite these measures, it has continued to operate its existing business in the country.
The decision has drawn criticism from politicians, advocacy groups and supporters of Ukraine who have called on multinational corporations to sever all commercial ties with Russia. Several major Western companies, including fast-food giant McDonald’s, exited the Russian market shortly after the conflict escalated.
Critics argue that businesses maintaining operations in Russia continue to support the country’s economy indirectly through taxes, employment and commercial activity.
Mondelez, however, maintains that its continued presence was necessary to safeguard its workforce and prevent the loss of company-controlled facilities.
Russia remains a significant market for the company, generating annual revenues estimated at between $1 billion and $1.4 billion since the start of the conflict.
While defending its Russian operations, Mondelez also highlighted its ongoing commitment to Ukraine. The company continues to operate manufacturing facilities in the country despite the challenges posed by the war.
Van de Put revealed that one of the company’s Ukrainian facilities has suffered damage on multiple occasions during the conflict but has been rebuilt each time. He said Mondelez remains committed to maintaining operations and supporting its employees in Ukraine.
The company also increased employee compensation following the outbreak of the war and has continued investing in its Ukrainian business despite the difficult operating environment.
The debate surrounding multinational companies operating in Russia remains a contentious issue more than four years after the invasion began, with businesses continuing to balance commercial interests, employee welfare and growing political and public scrutiny.
For Mondelez, the decision to remain has attracted criticism from some quarters, but company leadership insists it remains the most practical course of action under the circumstances.
