Hempel publishes statement on Russian business activities

According to a recently published statement, in 2019 during a routine internal audit of the subsidiary Hempel Russia, Hempel A/S learned that without its knowledge, products had been indirectly delivered to the construction of the Kerch Strait bridge, Simferopol Airport on Crimea as well as some Russian naval projects. The company “strongly” condemns “that our products ended up on these assets”.

The statement continues: “When Hempel A/S became aware of this, we immediately blocked a large number of Russian customers who were indirectly distributing products and further strengthened our screening of orders. We also appointed a full time Russian-speaking Compliance Manager at Hempel Russia to ensure that Hempel Russia observed international law and our own rules and Code of Conduct.”

“Employees in Hempel Russia deceived us”

According to the statement, the company has initiated a thorough internal investigation, supported by external legal and forensic experts, which confirmed that Hempel A/S did not violate EU sanctions. “It showed, however, that certain employees in Hempel Russia deceived us by arranging for Hempel coatings to be indirectly delivered to these projects. This was and is against Hempel A/S’ own rules and Code of Conduct.”

The statement concludes: “Hempel A/S has a zero-tolerance policy for violations of its internal rules and, as a direct result of these actions, swift action was taken to end the employment of those who broke the rules. Hempel A/S’ internal rules regarding sanctions compliance were clearly established and communicated, but deliberately violated by some Hempel Russia employees.”

Hempel has since announced the permanent closure of its business and operations in Russia.