14 Mar 2022 10:52

Akzo Nobel expects operations in Russia to collapse within weeks

MOSCOW. March 14 (Interfax) - Akzo Nobel NV, one of the world's largest paint producers, expects its Russian operations to collapse in the next few weeks due to the disruption of key supply chains and financial problems faced by its Russian customers because of international sanctions.

It is quite likely that this will lead to the gradual phasing out of the company's business in Russia over the next month or two, the Dutch company's CEO, Thierry Vanlancker said in an interview with the Financial Times.

This will be because the company can no longer access raw materials or because at some point its main customer will no longer be able to pay, he said.

Since its Russian operations are quickly unravelling, there is no need for the company to announce its departure from the company, he said. There have not been any statements regarding Akzo Nobel's exit from Russia, but given the economic realities this is a matter of weeks, Vanlancker said.

Akzo Nobel has three production facilities in Russia and about 650 employees. The company earned 200 million euros in revenue in Russia last year, which amounted to 2% of its total revenue.