UMBRA

The Ukrainian authorities are the main driving forces behind a website that has been labeling companies and individuals as "International sponsors of war" since February this year. Neither the companies nor the individuals have committed any illegal acts, and being mentioned on the list has no legal consequences. The list is solely intended to damage the reputation of companies and directors in order to force them to withdraw from Russia. It currently includes 30 companies, mostly from China, Greece, France, and the United States.

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Ukraine's initiative is relevant to the numerous foreign companies that continue to conduct business in Russia. The broad criteria for inclusion on the new blacklist puts virtually all foreign companies with operations in Russia at risk. These criteria include paying taxes in Russia, conducting business in multiple countries, owning well-known brands, lacking an announcement of plans to exit Russia, or actively increasing market share and earnings within the country. Foreign directors of Russian companies are also potential candidates for inclusion on the list.
 

The website encourages individuals on social media to utilize the blacklist as a platform for publicly denouncing companies and individuals. Moreover, it invites contributions from all users to propose additional companies and directors who may be subjects to public exposure due to their involvement in Russian activities.
 

People are furthermore encouraged to provide information about the assets of the companies and directors to the Ukrainian authorities. Lastly, there is an invitation - conveyed only in Ukrainian and not in other languages - for people to receive training and assistance in order to investigate on behalf of the Ukrainian authorities free of charge. The training is provided by Ukraine's Anti-Corruption Agency (NACP), which also receives the information from the volunteers.
 

Ukraine's latest initiative borders on defamation and extortion
 

In other words, European companies and their management can adhere to all relevant rules and sanctions meticulously, and still arbitrarely be labeled by the Ukrainian authorities as "international sponsors of war" and be exposed in full public view without any opportunity to defend themselves. Since the Russian invasion in 2022, Ukraine has pursued an aggressive campaign against foreign companies with activities in Russia, but this latest initiative completely disregards the rule of law and borders on both defamation and extortion.
 

Lately, Mondelez, the American company behind brands such as Marabou, Toblerone, Oreo, Daim, and others, has been added to Ukrainian blacklist and is now under pressure in the Nordic region. SAS, Norwegian, and Fjord Line were quick to announce that Mondelez's candy and snacks is no longer for sale on their flights and ships. In Norway, the retail company Coop has asked the authorities to take a stance on the new blacklist in Ukraine, while other Norwegian retail chains have noted that Mondelez is not subject to any sanctions and therefore continue to sell their candy and snacks.
 

"Since the Russian invasion in 2022, Ukraine has pursued an aggressive campaign against foreign companies with activities in Russia, but this latest initiative completely disregards the rule of law and borders on both defamation and extortion."
 

Danish Coop continues to sell Mondelez products, while the Danish retail giant Salling has reached out to Minister of Food Jacob Jensen (V) to inquire about the government's guidance on the Ukrainian authorities' new list.
 

In Norway, the government has not commented on Ukraine's latest shaming initiative. The main message from Foreign Minister Erling Rimestad is that Norwegian are obligated to abide by Norwegian law, including the current sanctions in effect. "It is up to companies and individuals to make independent decisions regarding their purchases and business partners," he told Norwegian media. He said that ethical considerations should be left to the discretion of each individual company and organization.
 

Companies stand alone
 

A few weeks after Russia's invasion of Ukraine, Yale University in the United States initiated a public record of major Western companies with operations in Russia. Were the companies withdrawing from Russia, in the process of doing so, or staying? Soon after, the Kyiv School of Economics (KSE) in Ukraine followed suit, also creating a website urging foreign companies to leave Russia. In Denmark, the Ukrainian ambassador, Mykhailo Vydoinyk, accused Danish companies with ongoing activities in Russia of having the blood of Ukrainian children on their hands. Main Danish paper Jyllands-Posten continuously published a list updating the status of Danish companies in Russia.

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More than a year later, more than 1,000 international companies have withdrawn from Russia or expressed their intention to do so. However, the shelves in Russian stores remain well-stocked. Many Western products are still present in Russia due to new import routes or because Western companies have sold their factories and operations in the country to Russian owners who have rebranded the products. Additionally, non-Western competitors have found opportunities to grow their market shares.
 

Now, the Ukrainian authorities, represented by the Ministry of Foreign Affairs and Ukraine's Anti-Corruption Agency, have again fueled the campaign of public shaming through the press and social media.
 

When the Danish press and public sentiment on social media attack, companies stand alone. Neither the Confederation of Danish Industry, the Danish Chamber of Commerce, other interest organizations, nor politicians or members of the government have yet stepped forward to protect the rights of Danish businesses or denounce the aggressive—bordering on illegal—methods employed by Ukrainian authorities against the business community in both Denmark and the rest of the world. Companies are left to navigate through an unparalleled and exceedingly difficult situation without any assistance or support.
 

Birgitte Dyrekilde
Umbra Communications and Intelligence