P&G halts investments, cuts back product sales in Russia

The consumer-products giant headquartered in Cincinnati joins a wave of companies responding to the war in Ukraine.
Procter and Gamble towers in Downtown Cincinnati.
Procter and Gamble towers in Downtown Cincinnati.(The Enquirer)
Published: Mar. 7, 2022 at 6:11 PM EST
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CINCINNATI (WXIX) - Procter & Gamble is pulling back its Russian operations in response to the war in Ukraine.

P&G CEO Jon Moeller announced on Monday the company has suspended operations in Ukraine and is discontinuing all new capital investments in Russia.

The consumer-products giant, which is also the world’s largest advertiser, is suspending all media, advertising and promotional activity in Russia as well.

Moeller highlighted the importance of P&G products to people’s daily lives, in effect arguing against a wholesale stoppage of sales within Russia. Instead, in the final new measure announced Tuesday, P&G will significantly reduce its product portfolio in the country to focus to focus on basic health, hygiene and personal care items.

P&G’s efforts in Ukraine include a multi-million-dollar relief package of cash contributions and P&G products—diapers, feminine care products and more—to refugee families. The company is also working to evacuate workers from Ukraine and provide support including food and shelter to P&G families in the country.

“Our hearts go out to all people who endure the unspeakable human toll of war, and we condemn aggression in any circumstance. We join the world in praying for peace,” Moeller said.

P&G’s investments in Russia date back 25 years. A Gillette plant exists in St. Petersburg, while a plant in Novomoskovki produces fabric, home and baby care products for brands including Tide and Pampers.

P&G has invested 6 billion rubles to modernize the plants since 2015.

Some 2,500 P&G employees reside in Russia, around 1,000 of which work in offices in Moscow, according to the Moscow Times report.

Around 60 percent of P&G products sold in Russia are produced in Russian factories, per the same report.

With Monday’s announcement, P&G joins myriad other global corporations who have responded to Russian President Vladimir Putin’s invasion of Ukraine by slowing or halting work in Russia, not all of them singularly motivated by US sanctions.

According to Reuters, companies that have promised to disinvest their Russian holdings or draw down service and operations in Russia include: BP, Shell and Exxon Mobil; Mercedes-Benz Group, BMW, Toyota, Nissan, Ford and more; Boeing; Microsoft, Apple and Dell; Visa and American Express; UPS and FedEx; TikTok and Netflix; Ireland-based IT giant Accenture; and French-based food supplier Danone.

But other consumer giants such as Nestle and Pepsi have yet to follow suit.

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