Milka and OREO manufacturer declared an international war sponsor: what it means

The National Agency for the Prevention of Corruption (NAPC) has added the American company Mondelez International to the list of international sponsors of the war. This company produces Milka and Alpen Gold chocolate, OREO and TUC biscuits, Picnic bars, Dirol chewing gum, etc. However, the NACP's decision does not mean that Mondelez International's products will be banned in Ukraine.

On May 25, Mondelez International was included in the War and Sanctions list as an international war sponsor. The list is compiled by the NACP jointly with the Ministry of Justice of Ukraine.

The American company continues to be active in the Russian market, pays taxes to the Kremlin, and thus financially supports the aggression against Ukraine. In 2022 alone, Mondelez's Russian subsidiary paid more than $61 million in taxes to the Russian budget.

The company has three large production facilities in Russia: "Bolshevik", a factory in Pokrov and a plant in Veliky Novgorod. "The company is the market leader in the categories of chocolate, chocolate sweets and biscuits, and is also ranked second in the market in the category of chewing gum and caramel," the NACP notes.

Interestingly, after Russia's full-scale invasion of Ukraine, Mondelez employees in Lithuania, Latvia and Estonia officially appealed to the parent company's CEO Dirk Van de Put to stop operations in Russia. However, Mondelez International responded with a formal statement about the "suspension of new investments and investments in advertising" in Russia.

In fact, the company continues to promote its products in Russia and import new products to this market. "Mondelez publicly advertises its charitable assistance to children affected by the Russian invasion of Ukraine. However, at the same time, it is slyly expanding its activities in the aggressor country and continues to pay significant funds to its state budget. The money is spent, among other things, on missiles that kill Ukrainian children," the NACP said.

What does it mean to be declared a war sponsor?

Companies listed as international sponsors of war are included in the World-Check database. This does not threaten them with closure, but the database is used worldwide to identify and manage financial, regulatory and reputational risks.

According to the War and Sanctions project's website, it is designed to put pressure on those involved in the war. However, if new sanctions lists are drawn up by the National Security and Defence Council of Ukraine, individuals and companies from the list will also be proposed for inclusion in such lists.

Mondelez International is not the first international company to be included in the list. The list already includes Raiffeisen Bank International, Auchan, Metro, Procter & Gamble, Bonduelle, Leroy Merlin, Xiaomi and others.

All of these companies are still operating in Ukraine, as the NACP has no authority to close international businesses or restrict their operations. But if sanctions are imposed on these companies, the situation may change.

As OBOZREVATEL previously reported, 25 European companies were named as supplying the Russian army with chips, shells and ammunition. These goods are supplied to Russia from Germany, France, Switzerland, Hungary, Slovakia, Italy, Estonia, Lithuania, Austria and Poland.

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