Mondelez CEO Defends Russia Operations Despite Tax Payments Funding Ukraine War

Mondelez International, owner of brands such as Cadbury, Philadelphia, and Toblerone, continues to operate in Russia, a decision chief executive Dirk Van de Put maintains was correct following the 2022 invasion of Ukraine. Van de Put conceded that the firm's tax contributions in Russia ultimately help finance the war, stating, "I'm not pleased about that."

While numerous Western companies, including McDonald's, withdrew from Russia after the full-scale assault, Mondelez has maintained its presence, discontinuing new investments and suspending advertising expenditure. Van de Put argued that a complete exit would jeopardise thousands of jobs and allow the Kremlin to confiscate and profit from their local operations, potentially generating greater income for the war effort.

Last year, over 70 Members of Parliament, acting through the All Party Parliamentary Group on Ukraine, urged Mondelez to sever business ties with Russia. Alex Sobel, the group's chair, wrote that continued operation in Russia could not be justified as "business as usual" given the civilian casualties and abductions in Ukraine.

Mondelez's Russian sales have reportedly generated between $1 billion and $1.4 billion annually since the invasion. Meanwhile, the company also maintains operations in Ukraine, where two manufacturing plants have faced repeated damage, requiring significant investment to rebuild. Van de Put noted a recent office building strike in Ukraine on the day he discussed the matter, confirming staff safety.