Cadbury chocolate-owner Mondelez defends staying in Russia

Getty Images

The boss of Cadbury chocolate-maker Mondelez has defended its decision to continue doing business in Russia but admitted he is "not pleased" the firm's taxes are funding the war with Ukraine.

Chief executive Dirk Van de Put said it was the "right decision" to stay after Russia invaded Ukraine in 2022, saying pulling out would risk thousands of jobs and leave Mondelez vulnerable to the Kremlin taking control of its local operations.

Many Western companies such as McDonald's exited Russia after it launched a full-scale assault on its neighbour.

Others remained but Mondelez said it had discontinued new investment in its Russian business and suspended spending on advertising.

In an in-depth discussion as part of the BBC's Big Boss Interview series, Van de Put said: "I think over time you try to be neutral in the whole conflict. We're not trying to take any side.

"I think we did the right thing for our people in Russia. Can we be criticised for that? Yeah, of course. We pay taxes in Russia that helps the war. I'm not pleased about that."

Since Russia's full-scale invasion of Ukraine, the country has generated sales of between $1bn (£745m) and $1.4bn a year for Mondelez.

Last year, more than 70 MPs signed a letter from the All Party Parliamentary Group on Ukraine to Van de Put calling for Mondelez to sever its business ties with Russia.

Alex Sobel, chair of the parliamentary group, wrote: "Continuing to operate in a nation responsible for the deaths of countless Ukrainian civilians and the abduction of thousands of children cannot be justified under any definition of 'business as usual'."

Van de Put told the BBC he believed if Mondelez pulled out of Russia: "They would have confiscated our plant. It would have probably given them a much bigger source of income, keep on selling our products to fund the war.

"So I feel that in the end it is not the most popular decision, but I think it was the right decision."

Mondelez, which also produces Philadelphia cream cheese, Ritz crackers and triangular chocolate Toblerone, continues to operate in Ukraine although the conflict is never far away.

On the morning he spoke to the BBC, Van de Put said an office building there had been hit. "Everybody's safe," he said. "But yes, it's the reality of the situation."

Mondelez operates two manufacturing plants in Ukraine - one in Trostyanets, near the Russian border and one in Vyshhorod, close to the capital Kyiv.

"One plant got hit twice, we've rebuilt it twice, " said Van de Put, adding that it costs tens of millions to do so.

"We've agreed that we will rebuild every single time there so we keep on investing in the country. We doubled everybody's salary when the conflict started, and we have not fired anybody.

"We're committed there but for the people that work there every day there's danger," he added.

UK vows to phase out Russian diesel and jet fuel imports by new year

Shrinking Milka chocolate bar tricked consumers, says German court