Reckitt Benckiser : An update on Russian operations

13 Apr 20224min read 9498Views

An update on Russian operations

Reckitt begins a process aimed at transferring ownership of its Russia business.

13 April 2022

Following a thorough internal review and our announcement of 23 March 2022, Reckitt has begun a process aimed at transferring ownership of its Russian business, which may include a transfer to a third party or to our local employees.

We will work closely with our colleagues in Russia on the details of the various options available to ensure an orderly process. We will do our utmost to ensure those colleagues' ongoing employment in any new structure and we commit to paying their monthly salaries and benefits until the end of 2022.

This action builds on our previously announced decision to freeze capital investments, advertising, sponsorships and promotions in Russia. We will update on progress as soon as we have more information to share.

23 March 2022

We are appalled by the ongoing war and the devastating harm being inflicted on the Ukrainian people. We hope for immediate peace.

We continue to do everything we can to help in Ukraine - advancing funds, providing additional medical support and insurance, organising accommodation, donating funds. We are incredibly proud of the way that as Reckitt we have come together.

Many international companies have also taken action and are reassessing their current position in Russia. We are no exception. In doing so, we want to be clear that we are not guided by profit or making money in Russia. What matters most is the safety of our people and their families.

The operational realities of our business in Russia have changed in fundamental ways. We can assure you that the GEC is working intensely to evaluate a range of further options, the detail of which we cannot go into now. As soon as we can tell you more, we will do so.

Please bear with us as we go through this delicate process. Doing the right thing takes time and diligence.

10 March 2022 statement

Reckitt strongly condemns the war that is inflicting devastating harm on the Ukrainian people. Like the rest of the world, we watch in horror as events unfold. A diplomatic breakthrough is urgently needed to end the fighting and avoid further pain and suffering.

Here is an update on our response so far.

From the start, our primary concern has been the safety and security of our people. As you know, our operations in Ukraine are suspended. We are focused on providing urgent support for our 366 colleagues and their families. Our team has shown remarkable leadership in unimaginable circumstances.

We are doing everything we can to support our colleagues at this very difficult time. For example, we are organising temporary accommodation, financial assistance, and essential supplies for those who are displaced and seeking shelter.

Our teams in neighbouring countries are stepping up in a big way. Hundreds of colleagues have organised to help those fleeing war. A Reckitt team in Poland is volunteering to collect and hand out day-to-day necessities to refugees as they cross the border, everything from blankets and clothes to toys. These are just some examples of ordinary people doing heroic things.

As you would expect, we have donated hygiene products and pain medication made by Reckitt. We are also working with the British Red Cross to help them provide essential shelter and address medical, food and sanitation needs. We have committed £1 million through a mixture of corporate and employee-matched fundraising efforts. Thank you to all those who have generously donated so far. We encourage anyone who would like to contribute, please do so here.

Many of you are also asking about Russia. Our first priority is the duty of care we have to our 1300 colleagues and their families. We are also meeting the needs of ordinary Russians who rely on our basic hygiene and health products for their everyday needs.

We have taken action and will continue to do so. We have stopped all advertising, promotion and sponsorships in Russia. Last week, we also froze any capital investments in the country.

Conditions remain volatile and unpredictable. We are staying very close to our teams as we assess our response every day. We will adapt as circumstances evolve and will continue to keep you informed.

I am immensely proud of the resourcefulness and collective spirit being shown by our colleagues around the world as we come together to help people in their time of urgent need.