“We at Oriflame are deeply concerned about the ongoing war in Ukraine and support all those suffering from this humanitarian catastrophe,” the company said.
At the same time, Oriflame decided not to close the Russian business in order to support employees. But even then, the company pointed to problems with the supply chain and disruptions in trading operations.
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The share of Oriflame’s income from Russia in 2021 was 16%, from Ukraine and Belarus 2% each. At the same time, Russian revenue reached 170 million rubles, which the company considered insignificant.
The owners of Louis Vuitton and Chanel will temporarily close stores in Russia
Oriflame is a Swedish-Swiss manufacturer of cosmetics, personal care products, perfumes and accessories, operating on the principle of “direct sales” in more than 60 countries around the world. The company hires consultants who bring in new customers and sell catalog items.
The largest Oriflame plant is located in Poland, with additional production facilities in China and India. In 2007, the company opened a lipstick factory in the Moscow region. After the company was bought by X5 Retail Group, Oriflame moved its facilities to a production and logistics complex in Noginsk, Moscow Region.
Since February 24, activities in Russia suspended or shut down more than 400 foreign companies, according to Yale University estimates. Among them was the British Unilever, which suspended the export of products to Russia. It produces household chemicals, hygiene products and ice cream.