A Swedish administrative court has overturned Region Blekinge‘s decision to boycott products from the American multinational food company Mondelez International. The regional authority enacted the boycott in June 2023, in response to the company’s continued operations in Russia amidst the ongoing war in Ukraine.
However, the Kammarrätten (Administrative Court of Appeal) ruled this week that the boycott violated Swedish and EU laws, stating that regional authorities cannot discriminate against suppliers based on the countries in which they operate.
The court emphasized that public procurement practices must adhere strictly to legal frameworks. “We are complying with the verdict, but our stance against supporting Russia’s war in Ukraine remains unchanged,” said Anders Johansson, Director of Region Blekinge, in a press statement.
Mondelez: iconic Nordic and European brands
Mondelez International is one of the world’s largest snack and confectionery corporations, headquartered in Chicago, USA. Established in 2012 after Kraft Foods split into two distinct entities, Mondelez owns numerous iconic global and regional brands.
In the Nordic countries, Mondelez is known for beloved brands such as Marabou (Sweden), Freia (Norway), Oreo, TUC, Daim, Philadelphia cream cheese, and Stimorol chewing gum. Across Europe, Mondelez also holds prominent brands including Milka, Cadbury, Toblerone, and LU biscuits, widely recognized staples in European households.
Mondelez under fire for thriving business in Russia
Mondelez has drawn significant criticism internationally due to its continued business in Russia after the invasion of Ukraine. Ukrainian authorities added the company to a blacklist, accusing it of indirectly supporting Russia’s war efforts.
Initially, Mondelez pledged to reduce non-essential activities and stop new investments in Russia. Despite these assurances, its revenue from Russian operations significantly increased from €942 million in 2021 to €1.357 billion in 2022. This surge in revenue led Ukraine’s National Agency on Corruption Prevention (NACP) to designate Mondelez as an “international war sponsor.”
Mondelez has publicly stated it continues to monitor the geopolitical situation closely, affirming its commitment to international sanctions while maintaining its operations in both Ukrainian and Russian markets.
Legal ruling reshapes future of political activism in public procurement
This court ruling sets an important precedent for Swedish municipalities and regions considering politically driven procurement policies. While local authorities retain the right to voice political opinions, procurement policies must strictly comply with existing legal standards.
As geopolitical tensions persist, particularly related to Russia’s actions in Ukraine, the intersection of business ethics and legal obligations will continue to pose challenging questions. This case underscores the legal limitations faced by public entities attempting to use procurement as a foreign policy tool—a dilemma likely to become increasingly relevant in future conflicts.
