HomeEverythingEducation
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
← All Stories

Mondelez CEO admits Russian taxes fund war, faces calls for action

Created at 6 Jul · 5:55 PM1 source↑ Market-relevant
IN SHORT

Mondelez CEO Dirk Van de Put acknowledged that taxes paid by the company in Russia help fund the war in Ukraine, stating it was the 'right decision' to remain in the country. This confession comes as the company faces renewed calls for withdrawal and potential government action.

✉Newsletter

PiQ Daily

Pick your topics. Get only what matters, on your cadence.

Key Numbers

four and a half yearsduration of calls for companies to leave Russia

Who's Involved

Mondelez
U.S. snacking giant that pays taxes in Russia
Dirk Van de Put
CEO of Mondelez International, Inc.
BBC
interviewed Mondelez CEO
B4Ukraine
published framework for responsible corporate exits
Rockwool
Danish insulation manufacturer with similar Russia operations
G7 governments
called upon to hold companies accountable
UN
guidance on business activities in conflict zones
Mondelez CEO admits Russian taxes fund war, faces calls for action

↳ Why This Matters

The confession from Mondelez's CEO directly links corporate tax payments in Russia to the funding of its war in Ukraine, raising significant ethical and political questions about Western companies operating in the aggressor state. It intensifies pressure on governments to implement stronger sanctions and hold corporations accountable for their role in supporting Russia's war economy.

Key facts

  • Mondelez CEO Dirk Van de Put admitted that taxes paid by the company in Russia contribute to funding the war in Ukraine.
  • Van de Put stated that the company's decision to remain in Russia was made to protect its employees.
  • The CEO expressed displeasure about paying taxes that help fund the war but indicated no change in operations.
  • A Mondelez factory in Ukraine was hit by Russian drones shortly after Van de Put's interview.
  • The article criticizes the company's stance, arguing that complexity is not a valid reason to continue business as usual in Russia.
  • The authors call for G7 governments to take decisive action to hold companies like Mondelez accountable.

The CEO of U.S. snacking giant Mondelez, Dirk Van de Put, has publicly acknowledged that the taxes paid by the company in Russia contribute to funding the war in Ukraine. In an interview with the BBC, Van de Put stated that while he was "not pleased about that," the company believed it made the "right decision" to remain in Russia to protect its employees.

This admission comes as Mondelez faces continued criticism for its operations in Russia, with calls from civil society, investors, and the Ukrainian government for companies to withdraw. The article highlights that just days after Van de Put's interview, a Mondelez factory in Ukraine was struck by Russian drones, injuring two people.

The authors argue that the company's expressed displeasure and concern for its Russian employees do not justify its continued presence, suggesting profit motives are at play. They counter the argument that exiting Russia is too complex, pointing to a framework published by B4Ukraine that offers practical steps for responsible withdrawal. The article also draws parallels with the Danish company Rockwool, whose Russian plants were seized by the Kremlin despite its claims of protecting employees.

Van de Put also expressed concern that if Mondelez pulled out, its plant might be confiscated and used to fund the war. He stated the company is "not trying to take any side." However, the article refutes this neutrality, citing UN guidance that business activities in conflict zones are never neutral. The authors conclude by urging G7 governments to take decisive action to hold companies like Mondelez accountable for enabling Russia's aggression and profiting from the war.

Frequently asked questions

Dirk Van de Put admitted that taxes paid by Mondelez in Russia help fund the war in Ukraine and stated that the company made the 'right decision' to remain in the country to protect its employees.

Days after the interview, Russian drones struck a Mondelez factory in Ukraine, injuring two people.

The argument is that corporate entanglement in Russia's war economy has real consequences, that complexity cannot justify continuing business as usual, and that withdrawing would deal a blow to the Russian war economy.

Mondelez states that remaining in Russia is necessary to protect its employees and operations, and that pulling out could lead to confiscation of its plant, which would then fund the war.

What Happens Next

01G7 governments are urged to take decisive action to hold companies like Mondelez accountable.
02Policymakers are called upon to expand sanctions to all sectors supporting Russia's budget.

Get the newsletter.

Pick the topics you actually care about. We'll email when there's news worth your time, on the cadence you choose. Cancel any time from your account.

Cadence

How It Developed

Mondelez CEO Dirk Van de Put stated that taxes paid by the company in Russia help fund the war.
Van de Put acknowledged that remaining in Russia was the 'right decision' for the company's employees.
A Mondelez factory in Ukraine was struck by Russian drones days after the CEO's interview.
The company has faced past criticism for continuing operations in Russia.
The article argues that complexity cannot justify continued business as usual in an aggressor state.
The B4Ukraine framework offers guidance for companies on responsible withdrawal from Russia.
Van de Put expressed concern that confiscation of the plant would provide income to fund the war.
The CEO stated the company is not trying to take sides in the conflict.

Sources

T1
"We pay taxes in Russia that helps war" — Oreo-maker's confession demands action on Russia remainersThe Kyiv Independent

Related Stories

Husband of jailed Russian playwright keeps vigil in exile
6 Jul · 5:05 AM
Trump Threatens 100% Tariff on European Countries Over Tech Taxes
6 Jul · 6:40 PM
Japan's government efficiency drive faces ministry resistance
6 Jul · 3:31 PM
India orders Meta to remove ads promoting child sexual abuse
6 Jul · 7:45 AM
EU Demands Fair Play After Trump Intervention in World Cup
6 Jul · 9:55 AM