P&G suspends ads in Russia and discontinues capital investments

P&G suspends ads in Russia and discontinues capital investments

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P&G is suspending all media, advertising, and promotional activity in Russia and has discontinued all new capital investments. P&G’s president and CEO Jon Moeller told employees in a memo that it is significantly reducing its product portfolio to focus on basic health, hygiene, and personal care items needed by the Russian families who are dependent on them.

"As we proceed with the reduced scale of our Russian operations, we will continue to adjust as necessary," Moeller said. P&G's Russian operations manufacture products for Tide, Pampers, and Gillette. 

According to Reuters, P&G employs 2,500 individuals in Russia and 500 in Ukraine. Both countries account for less than 2% of P&G's global sales. P&G posted US$76.1 billion in global net sales during its last fiscal year. Moeller said the company "proactively suspended operations" in Ukraine to help protect its people locally. Its list of efforts to assist individuals in the country includes evacuation assistance, financial and logistical support, as well as the provision of food, shelter and essential products for P&G families.

It has also rolled out a multi-million-dollar relief package of cash contributions and P&G products, including diapers, feminine care and other essentials. These are being sent to refugee families through the International Federation of Red Cross and Crescent Societies and relief organisations across Central and Eastern Europe.

"We are further expanding these efforts, including the employee matching gift programme," Moeller added. Within Ukraine, P&G is working with its distributors and aid organisations to replenish supply and deliver essential products consumers need. Across Europe, its manufacturing and distribution teams are also working around the clock to address extraordinary logistical challenges.

Although the current situation called for important changes immediately and over time, Moeller acknowledged that its Russian colleagues "face challenges and uncertainty for their futures that are also significant". P&G joins companies including WPP, Accenture, Levi, Chanel, Visa, and Mastercard to have exited Russia as a result of the recent invasion of Ukraine. 

Yesterday, Russia raised the establishment of humanitarian corridors to allow civilians to escape five Ukrainian cities including Kyiv, Reuters said. Last Saturday, Russia declared a partial ceasefire for humanitarian corridors out of Mariupol and Volnovakha.

Meanwhile, Russia said yesterday that corporate deals with companies and individuals from "unfriendly countries" will require approval by a government commission. Singapore was listed as one of the "unfriendly countries" along with the US, European Union member states, Britain, Japan, Canada, South Korea, Switzerland, Ukraine, Taiwan, Norway, and Iceland, among others, said Russian news agency TASS.

Photo courtesy: 123RF

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