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News Ukrainian anti-corruption agency demands Buzzi Unicem clarify its stance on Russian invasion of Ukraine

Ukrainian anti-corruption agency demands Buzzi Unicem clarify its stance on Russian invasion of Ukraine

Written by Global Cement staff 13 March 2023
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Ukraine/Italy: The Ukrainian National Agency for the Prevention of Corruption (NAPC) has placed Italy-based Buzzi Unicem on its list of Russian war sponsors. Ukrinform has reported that the NAPC accuses Buzzi Unicem of expanding its business in Russia since the country's invasion of Ukraine in February 2022, of supplying its products to Russian state-owned businesses including energy suppliers Rosatom and Rosneft, and of voicing support for the on-going invasion via its social media presence.

Between 2016 and 2021, Buzzi Unicem reportedly paid Euro62m-worth of taxes to Russia. In a statement, the NAPC said "For comparison, this is the cost of 206 Tochka U missiles." It concluded “Buzzi Unicem's continued business in Russia means direct support and sponsorship of terrorism by Russia.”

On 10 March 2023, Buzzi Unicem clarified that it has no business in Russia, calling the NAPC's listing 'defamatory.' The group explained that it has 'no involvement' in its Russian subsidiary SLK Cement's decision-making process related to local initiatives and commercial actions.

Buzzi Unicem said "Buzzi Unicem already clarified in its press release dated 12 May 2022 the decision to cease with immediate effect any operational involvement in the activities carried out by the subsidiary SLK Cement in Russia and to suspend all strategic initiatives and investments in the country." It defended the subsidiary, saying "SLK Cement is a Russian domiciled entity operating exclusively in that country and therefore subject to domestic legislation. Payment of taxes and having employees being mobilised to the army are not discretionary decisions, rather legal obligations within the Russian jurisdiction."

The group also voiced its support for Ukraine, saying "Despite significant financial losses incurred as a consequence of the Russian invasion, Buzzi Unicem did not stop operations in Ukraine, keeps supplying products to Ukrainian customers, paying taxes in Ukraine and providing job and humanitarian aid to its nearly 1000 employees and families in the country."

The English language release may be found here.

Last modified on 15 March 2023
Published in Global Cement News
Tagged under
  • Ukraine
  • Italy
  • Buzzi
  • War
  • Invasion
  • Sanctions
  • Russia
  • GCW599
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