Mondelēz International’s CEO, Dirk Van de Put, recently discussed investors’ sentiments regarding the company’s operations in Russia in an interview with the Financial Times (FT). Contrary to expectations, Van de Put indicated that investors are not particularly concerned about Mondelēz continuing to operate in Russia. He highlighted that shareholders are more likely to express concerns if a company has a significant business presence in Russia, where disruptions could have a substantial impact on their investments.

Despite Mondelēz’s Russian business accounting for 2.8% of its global revenues in 2023, down from 4% in 2022, Van de Put stated that there has been no shareholder pressure to leave Russia. While a few European funds have inquired about the business, no investors have explicitly requested the company to exit the country.

Criticism has been directed at Mondelēz from consumers and Ukrainian groups, who argue that Western companies still operating in Russia indirectly support the invasion and contribute to Ukrainian deaths. However, Van de Put defended the company’s decision, suggesting that those who exited Russia left their assets to individuals closely associated with Russian President Vladimir Putin, potentially aiding Putin’s war efforts more than the taxes paid by Mondelēz in the country.

Mondelēz employs approximately 2,700 people in Russia across three factories, with an additional 10,000 farmers indirectly benefiting from its operations. The company’s Russian business now operates as a standalone unit, experiencing lower investment but higher profitability in 2023 despite selling fewer goods.

Van de Put’s comments reflect a broader trend in the consumer-facing industry, where companies are openly discussing their reasons for maintaining operations in Russia. Despite initial announcements by several Western companies to leave Russia following the full invasion of Ukraine, few have been able to exit entirely. As a result, chief executives are increasingly transparent about their decisions to continue operating in Russia amidst ongoing geopolitical tensions.