Mondelez defends staying in Russia despite Ukraine war pressure

Mondelez International, the American snacking giant behind Cadbury chocolate and Oreo cookies, has doubled down on its decision to keep operating in Russia more than three years after the country’s full-scale invasion of Ukraine began. Chief executive Dirk Van de Put told reporters this week that staying was simply the “right decision,” brushing aside the criticism that has followed the company since February 2022.

What Van de Put actually said

The Mondelez boss didn’t mince words. Speaking at an investor event, Van de Put argued that pulling out of Russia wouldn’t have stopped the war and would only have hurt the thousands of local employees who depend on the company’s factories there. Mondelez employs roughly 3,000 people across its Russian operations and runs two manufacturing plants in the country. “We made the right decision,” he said flatly, adding that the business has continued to function “normally” in the market.

It’s a position the company has held consistently, even as rivals like McDonald’s and Renault made high-profile exits early in the conflict.

The numbers behind the decision

Russia isn’t a trivial market for Mondelez. The company generated approximately 2% of its global net revenues from the country before the war — a figure that sounds small until you realise Mondelez posted total revenues of around $36 billion in 2023. That’s roughly $720 million tied to a single market the company has chosen not to abandon.

Still, the company has faced real financial headaches. Currency restrictions and rouble volatility have complicated profit repatriation, and Western sanctions have created supply chain friction. Yet Mondelez hasn’t wavered.

Critics aren’t buying the humanitarian argument

Not everyone is convinced by Van de Put’s framing. Corporate accountability groups have long argued that companies remaining in Russia are effectively helping to fund a war economy through tax revenues and continued consumer spending. Ukraine’s government has repeatedly called on multinationals to leave, publishing its own “sponsors of war” list that has named several global brands.

One trade analyst tracking the consumer goods sector put it bluntly: “The employee welfare argument is legitimate up to a point, but at some stage companies have to weigh that against what their presence signals to the international community.”

And that tension isn’t going away.

What comes next for Mondelez in Russia

Van de Put indicated there are no current plans to divest Russian assets or scale back production. The company reportedly considered a sale in 2022 but couldn’t find a viable buyer at an acceptable price — a problem that has trapped several multinationals in markets they’d rather leave quietly.

With the conflict now in its fourth year and no ceasefire firmly in place, Mondelez’s position is likely to face fresh scrutiny each time the company reports earnings. Investors have largely shrugged so far. But public sentiment, particularly in Europe where Cadbury has deep brand loyalty, could yet force a rethink.