After two years of controversy, Unilever succumbed to pressure and sold its Russian subsidiary to local manufacturer Arnest Group, owned by a billionaire businessman known as the “hairspray king."WHO: Arnest Group is a Russian manufacturer of perfume, cosmetics, and household products run by industrialist Alexey Sagal. Since the invasion of Ukraine, the group snapped up Western companies’ operations in the country. The group acquired Heineken NV’s assets in Russia for €1 last year, Ball Corp.’s beverage packaging business for $530 million in 2022, and the local holdings of Swedish cosmetics group Orilame.WHY: Unilever came under criticism for staying in Russia long after the invasion. A Ukrainian anti-corruption body added the company to its list of “International Sponsors of War” last year.IN THEIR OWN WORDS: Hein Schumacher, CEO of Unilever, said in a statement, “Unilever has today completed the sale of its Russian subsidiary to Arnest Group, a Russian manufacturer of perfume, cosmetics and household products. The sale includes all of Unilever’s business in Russia and its four factories in the country. Our business in Belarus is also included in the sale.”Schumacher detailed the yearlong process. “Over the past year, we have been carefully preparing the Unilever Russia business for a potential sale,” he said. “This work has been very complex, and has involved separating IT platforms and supply chains, as well as migrating brands to cyrillic. The completion of the sale ends Unilever Russia’s presence in the country.”DETAILS:Unilever sold its Russian subsidiary to local manufacturer Arnest Group.