Detergent maker Tide P&G may not be able to operate in Russia

A green wall bearing the Procter & Gamble logo is pictured at the entrance to the company’s highly automated cleaning products factory in Tabler Station, West Virginia, U.S., May 28, 2021. REUTERS/Timothy Aeppel

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NEW YORK, April 20 (Reuters) – Home goods maker Procter & Gamble Co (PG.N) said in a securities filing on Wednesday that it may not be able to continue operations in Russia in due to sanctions, restrictions on financial institutions, supply challenges and monetary controls.

P&G and many of its competitors reduced operations in Russia in March after Moscow invaded neighboring Ukraine. On Wednesday, P&G cited the impact of the war on its retail customers, suppliers and distributors as a determining factor in whether or not it will be able to stay in business in Russia.

P&G, which also makes Gillette razors, has around 2,500 employees in Russia.

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The company said there is “a high level of uncertainty about the course of the war, its duration and its eventual resolution.”

The company also said its two factories in Ukraine could be destroyed, leading the company to take a financial hit. There are approximately 500 P&G employees in Ukraine.

Before the war, P&G’s business in Russia and Ukraine accounted for 1.5% to 2% of its net sales and worldwide profit, executives said on a conference call with analysts on Wednesday. L3N2WI28E

P&G said last month it was ending all new capital investment in Russia and “significantly downsizing” its portfolio to focus on basic hygiene, health and personal care items.

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Reporting by Jessica DiNapoli in New York Editing by Marguerita Choy

Our standards: The Thomson Reuters Trust Principles.

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