Despite public pronouncements of a scaled-back presence, recent reports indicate that the Russian arm of AkzoNobel has experienced growth in revenue and profits since the invasion of Ukraine in 2022.

A recent investigation by NRC, a Dutch news outlet, revealed that AkzoNobel’s Russian subsidiary saw an 8% increase in revenue last year, following a modest 3% decline in 2022. This growth translated into a net profit of over 40 million in 2023,resulted in approximately 17 million in profit tax paid to the Kremlin over the past two years.

This news raises several ethical and practical questions regarding AkzoNobel’s commitment to its stated principles. While the company asserts that it has significantly reduced its business in Russia, the continued growth and profit generation in the country contradict this claim.

Several key points further complicate the situation:

Ownership and Dividends:The Russian subsidiaries remain owned by the AkzoNobel parent company in Amsterdam. Notably, no dividends have been paid out from these subsidiaries since 2022. This suggests that the profits generated in Russia are being retained within the company structure.

Unexpected Volume Increase: AkzoNobel’s spokesperson attributed the increased volume in its remaining operations to an unexpected growth in demand. However, the company has not elaborated on the specific factors driving this growth.

Legal Obligation to Pay Taxes: AkzoNobel has highlighted its legal obligation to pay taxes in the countries where it operates, citing the potential risk of nationalization by Russia. This justification, while valid, raises concerns about the company’s priority: profit generation versus ethical considerations.

AkzoNobel’s actions in Russia highlight the complex realities multinational companies face in navigating geopolitical tensions. While the company claims to have largely withdrawn from the country, the continued presence and profit generation raise questions about its commitment to ethical business practices. The company’s future decisions regarding its Russian operations will be closely scrutinized by stakeholders, demanding transparency and accountability in the face of a challenging situation.

Source:AkzoNobel with additional information added by GlassBalkan

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Apogee Enterprises, Inc. has revealed a positive financial development as its Board of Directors approves a 4 percent hike in the quarterly cash dividend, now set at USD 0.25 per share. This increase, effective from February 14, 2024, showcases Apogee’s commitment to rewarding shareholders, with the dividend payable to shareholders of record as of January 30, 2024. Remarkably, this move marks the eleventh consecutive year of dividend increases for Apogee, reflecting a substantial 178 percent growth from USD 0.09 per share to the current USD 0.25 per share.

Apogee Enterprises, headquartered in Minneapolis, Minnesota, USA, is a renowned industry leader in providing architectural products and services for building enclosures. Specializing in high-performance architectural glass, windows, curtain wall systems, storefronts, and entrance systems, Apogee also offers integrated project management and installation services. Additionally, the company is recognized for its value-added glass solutions used in custom picture framing and displays. This strategic dividend increase solidifies Apogee’s financial stability and underscores its commitment to delivering value to shareholders.

Source: Apogee Enterprises, Inc. with additional information added by GlassBalkan

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