Tetra Pak transferring Russian division to local management

MOSCOW. July 26 (Interfax) - Tetra Pak, one of the world's largest manufacturers of food packaging materials, has decided to transfer the Russian division to local management.

"As a result of the cumulative effect of export restrictions on Russia that have disrupted supply chains, Tetra Pak can no longer continue to support its operations in Russia. In order to ensure the continuity of its customers' business, as well as to maintain the availability of essential products, the company has decided to transfer its Russian division to the local management team," the company said in a press release.

"The new company will continue to operate as an independent organization that will focus on the production of packaging materials at its facility in the Moscow Region, as well as on the development of reliable supply chains with a growing share of local suppliers," according to the press release.

The terms of the business transfer have not been disclosed.

Tetra Pak had previously announced that it was suspending investments and new projects in Russia, as well as reducing production and focusing on basic products. The company will continue to produce packaging for dairy products and baby food for as long as possible.

Tetra Pak International is part of Tetra Laval, headquartered in Switzerland. Tetra Laval specializes in food production, processing, packaging and distribution solutions.

Tetra Pak has been operating through JSC Tetra Pak in Russia. According to the company's data published in the SPARK-Interfax analytical system, revenue increased 18.2% to 49.36 billion rubles to Russian Accounting Standards (RAS) in 2021, sales profit surged 30.7% to 7.66 billion rubles, and net profit totaled 4.13 billion rubles against 4.4 billion rubles in 2020.