Procter & Gamble announced to reduce the scale of its business in Russia, suspend new local investment

Procter & Gamble CEO Jon Moeller said in a letter to employees published on its official website that Procter & Gamble will terminate all new capital investments in Russia and reduce the scale of local operations
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Procter & Gamble has halted all new capital investments in Russia and suspended all media, advertising and promotions, Moeller said
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At the same time, the product portfolio is reduced, focusing only on the basic health, hygiene and personal care products that the Russian family needs on a daily basis
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Meanwhile, P&G will continue to reduce the size of its Russian operations
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Procter & Gamble's official website shows that its Russian subsidiary produces Pampers diapers, Tide laundry detergent and Gillette razors
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In addition, P&G said it has provided assistance to refugee families in Central and Eastern Europe through organizations such as the Red Cross and suspended operations in Ukraine to protect local employees
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It is reported that despite a series of financial crises in Russia in recent years, it is still one of the most important growth areas for diapers, feminine hygiene products and other similar products, mainly due to the large size of the Russian market and more importantly, the market has Huge growth potential
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During Soviet times, most Soviet consumers were completely unfamiliar with these products due to insufficient supply
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However, that changed after the collapse of the Soviet Union in 1991, when a flood of personal care products flooded into Russia
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In just a few years from 1991 to 1995, the market grew nearly seven times, becoming the leader in global market growth at that time
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Market growth and high consumption have prompted multinational producers of diapers, feminine hygiene products and other similar products to set up their own factories in Russia
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At the beginning of this century, major multinational companies such as Procter & Gamble and Kimberly-Clark established factories in Russia and dominated the market for nearly 20 years
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Since 1991, P&G has invested nearly $900 million in Russia
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In 2019, P&G announced an investment of 2.
4 billion rubles (about $37 million) in Russia to enhance the capabilities of P&G’s Russian distribution centers, modernize manufacturing such as baby care products, and localize the production of feminine care products
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Now, with the deterioration of the situation in Russia and Ukraine, many foreign-funded companies dedicated to developing the Russian market in hygiene products have expressed their negative attitude towards the market
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In fact, in addition to Procter & Gamble, adhesive giant Henkel also released information on its official website that it would freeze future investment in Russia, stop all advertising and all sponsorship activities in state-owned media, and start more than 1 million euros (about 1 million euros) in Ukraine.
6.
8 million RMB) financial aid program
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For now, Henkel will continue to supply basic goods such as household and personal hygiene products in Russia
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The company will closely monitor the dynamic situation and decide on further measures
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