Reckitt Benckiser Group PLC (LSE:RKT, FRA:3RB, XETRA:3RB) has agreed to sell its Russian household hygiene business more than four years after first announcing exit plans in the wake of the Ukraine invasion, though it will still retain a presence in the country via its health business.
The Dettol and Lysol maker will divest the business for an undisclosed sum to Russia's Arnest Management, which is owned by local businessman Alexey Sagal.
Completion is expected during the second half of 2026, subject to customary conditions including UK regulatory approval.
The hygiene operation generated around 1% of core Reckitt's net revenue in 2025, suggesting the disposal will have a limited impact on the group's continuing sales.
Reckitt will retain its Russian health business, which continues to supply consumer products including medicines and other healthcare brands.
The consumer goods group said in April 2022, shortly after Russia's invasion of Ukraine, that it had begun a process aimed at transferring ownership of its Russian business to a third party or local employees.
It said it had frozen capital investment, advertising, sponsorship and promotional activity in the country.
The process subsequently became more difficult as Moscow tightened restrictions on Western companies seeking to leave Russia and took control of assets owned by groups including Danone (OTCQX:DANOY) and Carlsberg.
Reckitt's agreement with Arnest therefore marks its first material withdrawal from the country, although the company will retain a presence through its health operations.
Arnest owner Sagal, dubbed Russia's "Hairspray King", has built an estimated $1 billion fortune by acquiring assets sold by departing Western companies, including Heineken's Russian operations.
The Bell reported that Sagal's purchases were supported by 65 billion roubles of financing from state-backed lender VTB and close ties to Russia's industrial establishment and Vladimir Putin.
