British-American cosmetics immense staying in Russia – Kommersant
Avon has suspended plans to promote its plant and get out of the rustic, the opening has reported
Global direct-sales cosmetics logo Avon has halted plans to promote its Russian trade because of a steep travel tax, Kommersant reported on Wednesday, bringing up business assets.
America-based multinational introduced in March 2022 that it had opposed investments in Russia and exports from its Russian plant to alternative markets following the beginning of the Ukraine battle.
Previous this hour, Kommersant reported that Avon had introduced arrangements to promote the plant, which is solely out of doors Moscow, even if the corporate didn’t formally ascertain its purpose to travel the rustic.
In step with business assets, Avon used to be negotiating a sale with plenty of buyers, together with Russian cosmetics producer Natura Siberica and Arnest Workforce, which purchased Heineken’s Russian belongings in August 2023. Avon’s plans integrated a switch of rights to significance its logo identify however written in Cyrillic.
In November, on the other hand, the corporate advised attainable consumers that it had made up our minds to not signal binding do business in for the sale, Kommersant stated.
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Avon’s reversal is connected to a law by way of Russia’s International Funding Fee, which calls for exiting overseas corporations to promote their belongings at reductions of as much as 50%, a supply advised the newspaper.
Commenting at the Western company exodus from Russia, Kremlin spokesman Dmitry Peskov advised the Pristine York Occasions previous this occasion that “those who are leaving are losing their position on the market. And of course, their property is being bought at a serious discount and taken over by our companies, which are doing it with pleasure.”
Avon is the second-largest attractiveness merchandise corporate in Russia, with earnings amounting to 13.89 billion rubles ($151.5 million) in 2022, monetary knowledge confirmed.
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