P&G ending new capital investments, reducing portfolio in Russia

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FILE PHOTO: The logo for Procter & Gamble Co. is displayed on a screen on the floor of the NYSE in New York

By Jessica DiNapoli

NEW YORK -Procter & Gamble Co is ending all new capital investments in Russia and “significantly reducing” its portfolio to focus on basic hygiene, health and personal care items, CEO Jon Moeller said in a letter to employees posted on its website on Monday.

Big investors such as New York State’s pension fund are telling companies they should consider pausing operations in Russia as Russia invades neighboring Ukraine.

Cincinnati, Ohio-based P&G is also suspending all media, advertising and promotional activity, Moeller said in the post. The company said on its website that its Russian division makes Tide detergent, Pampers diapers and Gillette razors.

P&G has 2,500 direct employees in Russia and 500 in Ukraine, according to a spokesperson. Moeller said in the blog post that the company “proactively suspended” operations in Ukraine and is providing evacuation support, financial assistance, food and shelter to help employees.

P&G’s business in Russia and Ukraine accounts for less than 2% of the company’s global sales, a spokesperson said. P&G had $76.1 billion in global net sales in its last fiscal year.

(Reporting by Jessica DiNapoli in New York; Editing by Chris Reese and Cynthia Osterman)