Cadbury Owner Defends Staying in Russia Despite Tax Concerns

The chief executive of Mondelez, the company behind Cadbury chocolate, defended the decision to keep operating in Russia after its full-scale invasion of Ukraine in 2022.

Dirk Van de Put said pulling out would have put thousands of jobs at risk and left the firm's plants open to seizure by the Kremlin. He added that the company has stopped new investment and advertising spending in Russia since the war began.

In an interview with the BBC, Van de Put said the company aimed to stay neutral in the conflict. "I think we did the right thing for our people in Russia," he said. "We pay taxes in Russia that helps the war. I'm not pleased about that."

Russia has generated between $1bn and $1.4bn in annual sales for Mondelez since the invasion. More than 70 MPs signed a letter last year urging the company to leave the country.

Alex Sobel, chair of the All Party Parliamentary Group on Ukraine, wrote that continuing to operate in Russia could not be justified.

Van de Put said leaving would likely have led to the confiscation of Mondelez plants, giving Russian authorities a larger revenue stream from the firm's products. "So I feel that in the end it is not the most popular decision, but I think it was the right decision," he said.

Mondelez also runs two factories in Ukraine. Van de Put said one plant had been hit twice and rebuilt twice at a cost of tens of millions of dollars. The company doubled salaries when the war began and has not laid off staff there.

On the day of the interview, an office building in Ukraine was struck, though no one was hurt.