They chose the light side: NACP welcomes the decision of Belgian company Etex to exit the Russian Federation market

06.09.2023

The National Agency on Corruption Prevention (NACP) welcomes the decision of the Belgian company Etex to exit the Russian Federation market. By doing so, the company has made a choice in favor of democracy and leading a socially responsible business. Etex is one of the European leaders in the production of building materials, with more than 110 production sites in 42 countries. In January 2022, Etex acquired the Russian company Ursa, a manufacturer of extruded polystyrene foam and mineral heat and sound insulation. Ursa has 3 production centers in Russia and 6 regional offices, as well as representative offices in Belarus and Kazakhstan. Ursa's revenue in 2022 amounted to USD 73 million, and it paid more than USD 2 million in taxes to the Russian budget. At the same time, before Russia's full-scale invasion of Ukraine, Etex was present in our country as well. For example, the Siniat plant in Bakhmut employed about 300 people. As a result of the Russian aggression and occupation of Bakhmut, the Siniat plant was destroyed, and the company provided assistance to workers to move to other cities in Ukraine and abroad. The NACP analyzes hundreds of international companies within the framework of the International Sponsors of War project. Prior to being included in the list, the Agency informs companies about the consequences of doing business in Russia and urges them to stop cooperating to avoid potential reputational and financial risks. Thus, thanks to the proactive work of the Embassy of Ukraine in Belgium and the Ministry of Foreign Affairs of Ukraine, the company's board of directors, upon learning of the planned inclusion in the list of international sponsors of war, decided to alienate two enterprises of the Russian company Ursa, which were owned by Etex, and to finally withdraw from the Russian market. Etex announced this decision on its official website and in top-tier Belgian media. The company is also considering resuming its operations in Ukraine. The NACP calls on other international companies that continue to operate in Russia and pay taxes there to reconsider their position in order to preserve their reputation, stop financing the war, and not be associated with the killing of Ukrainians. The NACP is the body responsible for the compliance system in the private sector. During compliance procedures, counterparties are subject to integrity checks, including socially responsible business conduct in accordance with OECD standards. The list of “International War Sponsors” on the “War and Sanctions” portal is a powerful reputational tool for achieving the integrity of supply chains in the international dimension, the exit of international business from Russia, thus reducing the financial and technological ability of the terrorist country to kill Ukrainians. One of the “leverages” of the platform is cooperation with the World-Check database, which is used by banks and insurance companies for risk assessment. That is why for global companies, the consequences of being on the list become worse than continuing to do business with the aggressor country.