In its latest announcement, Hempel addressed what happened in 2019 after an audit of the company’s subsidiary in Russia.
In 2019 during a routine internal audit of its 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 in Crimea as well as some Russian naval projects.
“We strongly condemn that our products ended up on these assets,” stated Hempel A/S. “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”.
Following the finding, Hempel A/S 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 the company 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.
“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”, reads the statement.
At the conclusion of the internal investigation, Hempel A/S informed relevant Danish authorities for transparency and good accountability.
Hempel has since announced the permanent closure of its business and operations in Russia.