Mondi decides to sell Russian assets

SYKTYVKAR. May 6 (Interfax) - Mondi Group, a major Austrian packaging and paper manufacturer, has decided to sell its Russian assets, which were valued at 687 million euros at the end of 2021.

The company's board of directors, "having assessed all options for the Group's interests in Russia and recognising its corporate values and stakeholder responsibilities, [...] has decided to divest the Group's Russian assets," Mondi said in a press release.

"The divestment process for these significant assets is operationally and structurally complex and is being undertaken in an evolving political and regulatory environment. Accordingly, there can be no certainty when a transaction will be completed or as to the structure of any possible transaction," Mondi said, adding that as of December 31, 2021, the net asset value of the Russian operations was 687 million euros.

"The Russian businesses have, to date, managed supply chain constraints. However, the situation remains fluid, with interruptions to pulp and paper production possible going forward. All significant capital expenditure projects in Russia have been suspended," the company said.

Mondi has three processing plants in Russia, as well as an integrated mill that produces pulp, packaging paper and high-quality uncoated paper, JSC Mondi Syktyvkar LPK . All of these businesses, which have about 5,300 employees, work primarily for the domestic market and continue to operate. The Russian divisions generated about 12% of Mondi Group's revenue in 2021.