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This month, Olvi announced an adjusted profit of 42.2 million euros in the first half of the year, of which 16.6 million euros came from its Belarus operations.
Finnish beverage company Olvi faced criticism following its earnings report in August.
The criticism stems from the company’s continued operations in Belarus, which has supported Russia’s war in Ukraine.
Like many Finnish companies, Olvi announced plans to exit Belarus in 2022 following Russia’s invasion of Ukraine. But the company found itself unable to leave the country.
Chief Executive Officer Patrick RendellAdmitting that the situation is difficult, the company found itself unable to withdraw from Belarus after the country introduced legislation in late 2022 that banned the sale of shares in Western companies.
“The sale process did start and it was effectively underway for the first six months. Then the legislation changed in relation to the sale and the subsequent repatriation of dividends,” Rendell explained.
Sales from Belarus amounted to 16.6 million euros in the first half of the year
This month, Olvi announced an adjusted profit of 42.2 million euros in the first half of the year, of which 16.6 million euros came from its Belarus operations. Olvi operates in Belarus through its subsidiary Lidskoe Pivo, which has about 840 employees.
Rendell stressed that all of Olvi’s business is conducted through its local funds in the country. The company stopped exports to Belarus in spring 2022.
Yle asked the CEO whether the company planned to actively sell its business in Belarus.
“Such measures will be reported as they progress. There is nothing new to report at this time,” he said.
Asked whether the company’s business in Belarus had damaged its reputation, Rendell confirmed this.
“Yes, this topic always sparks discussion and interest. I am glad to have a logical and appropriate discussion on the matter,” Rendell said.
Some foreign companies are still in Belarus
according to Laura SolancoThe number of foreign companies that have stopped doing business in Belarus is relatively small compared to those that have withdrawn from Russia, according to a senior adviser at the Bank of Finland.
She said some companies believe they can continue to do business in Belarus because consumers are not as critical of the country as they are of Russia. Solanke said the potential damage to the companies’ reputations is not as great and there is less pressure to sell operations in the country.
Petri VolioThe director of the Confederation of Finnish Industries (EK) acknowledged Olvi’s difficulties. According to him, this is also a wider problem in Europe.
“Both Russian and Belarusian administrative measures are designed to make it as difficult as possible for foreign companies to leave,” Volio explains.
Silpa OksanenThe head of the Eastern Europe department at the Finnish Ministry of Foreign Affairs considers the culture of business operations in Belarus to be uncertain, adding that it is difficult to get an overall picture of Finnish companies currently operating in the country.
However, she noted that Belarus is not usually considered an attractive country for European companies.
“The country’s 2020 electoral fraud reduced the business community’s interest in doing business in the country, and this development is still continuing,” Oksanen said.
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