Finnish beverage firm Olvi has faced criticism after it issued its earnings reports in August.
The criticism stems from the company's continued operations in Belarus, a country which has continually supported Russia's war in Ukraine.
Like many Finnish firms, Olvi announced plans in 2022 to pull out of Belarus after Russia invaded Ukraine. But the company found itself unable to leave the country.
Olvi's CEO, Patrik Lundell, acknowledged that the situation was difficult, because the firm found itself unable to pull out of Belarus after the country rolled out legislation at the end of 2022 which prohibited the sale of shares belonging to Western companies.
"The sell-off process was indeed started and effectively worked on for the first six months. Then legislation changed regarding the sale, and then later also the repatriation, of dividends," Lundell explained.
€16.6m from Belarus in first half
This month Olvi announced adjusted earnings of 42.2 million euros during the first half of the year, 16.6 million euros of which coming from its Belarus business. Olvi's operator in the country is its subsidiary Lidskoe Pivo, a firm employing around 840 people.
Lundell underscored that all of Olvi's business is carried out via its own local funds in the country. The firm stopped exports to Belarus in the spring of 2022.
Yle asked the CEO whether the company plans to actively sell off its operations in Belarus.
"Such measures are always reported as progress is made. There is nothing new to report [about that] at the moment," he said.
When asked whether the company's operations in Belarus had become a reputational disadvantage, Lundell confirmed that was the case.
"Yes, the topic always raises discussion and interest. I have liked that it was possible to have a logical and appropriate discussion about the matter," Lundell said.
Some foreign firms still in Belarus
According to Laura Solanko, a senior adviser at the Bank of Finland, relatively fewer foreign companies have stopped doing business in Belarus compared to firms that pulled out of Russia.
She said that some companies feel they can continue operations in Belarus because consumers are not as critical about Belarus as they are about Russia. According to Solanko, the potential damage to those companies' reputations are not as significant and there is less pressure to sell off their businesses in the country.
Petri Vuorio, director of the Confederation of Finnish Industries (EK), acknowledged Olvi's difficulties. According to him, it is also a broader problem in Europe.
"Administrative measures in both Russia and Belarus have made it as difficult as possible for foreign companies to leave," Vuorio explained.
Sirpa Oksanen, who leads the Finnish Foreign Ministry's Eastern European unit, characterised Belarus' business operational culture as uncertain, adding that it was difficult to get a broad overview of Finnish companies currently operating in the country.
However, she noted that Belarus is not generally considered an attractive country for European companies.
"The country's fraudulent elections in 2020 reduced the business world's interest in operating there, and that development has continued," Oksanen said.
