8 May 2024 13:25

Putin allows Lakra Sintez to buy idle BASF paint and varnish plant near Moscow

MOSCOW. May 8 (Interfax) - Russian President Vladimir Putin has allowed Lakra Sintez LLC, one of Russia's biggest paint and varnish producers, to acquire 100% of BASF Vostok LLC, a Russian subsidiary of German chemical giant BASF.

The corresponding order was published on the official legal information website.

"To permit Lakra Sintez LLC to close a transaction to acquire 100% of the BASF Vostok LLC, owned by BASF Coatings GmbH," the document says.

BASF has announced its intention to curtail all activities in Russia and Belarus except food additives production.

BASF Vostok was founded in October 1999. Its main business was the production of paints, varnishes and similar coating materials, printing inks and mastics.

BASF said in 2022 that it had recognized impairments on assets in Russia and Belarus of 51 million euros and provisions for obligations to customers, suppliers and employees in the amount of 27 million euros. These assets accounted for around 1% of BASF Group's total sales in 2021.

BASF operates at least four other subsidiaries in Russia: BASF LLC (fertilizer trading), BASF Industrial Metals LLC (trading of metals in primary forms), BASF Yug LLC (seed trading) and Chemetall LLC (industrial chemicals trading). BASF Industrial Metals LLC was liquidated in September 2023 and Chemetall LLC is under liquidation.