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Article

16 Aug 2023

Author:
B4Ukraine Coalition

Follow-up letter to Cargill regarding its ongoing business activities in Russia

We are writing to follow up on our previous correspondence with Cargill dated 16th January 2023 regarding potential inconsistencies between Cargill’s obligations, as articulated in the UN Guiding Principles on Business and Human Rights (UNGPs), and the company’s ongoing business operations and relationships in Russia that may contribute to, or be linked with, human rights harms...We are writing once again to formally notify Cargill on the serious and increasing risks the company faces by continuing its operations in Russia that may amount to complicity in human rights abuses committed by Russia...

On March 11, 2022, Cargill announced that it will “continue to operate our essential food and feed facilities in Russia [...] This region plays a significant role in our global food system and is a critical source for key ingredients in basic staples like bread, infant formula and cereal.” In the same statement, Cargill announced that it is “scaling back business activities there and have stopped investment.” The scope of this pledge remained undefined.

It was recently reported that Cargill’s Russian subsidiary will stop exporting grain from Russia in the next agricultural year, starting on July 1, 2023, and lasting until June 30, 2024. At the same time, Cargill allegedly confirmed that there are no planned changes to "any other activities and assets of Cargill in Russia"...

Despite Cargill’s promise to scale back its operations, the company continues to list job positions in the country...

Cargill is one of the largest foreign companies still operating in Russia. In 2022, the company’s annual revenue in Russia hit $2.1bn, which constitutes a growth compared to its revenue in 2021. Considering its significant position in the Russian economy, Cargill is also a significant taxpayer in Russia. This could make the company indirectly involved in financing Russian aggression since corporate taxes are currently estimated to make up approximately 10% of Russia’s GDP — enough to fund 43% of Russia’s military budget. Therefore, taxes paid by companies who stay in Russia indirectly contribute to the war...

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