13 Jun 2023 14:32

After exiting Russia, Essity will continue operating under Russian shareholder management - Ministry

MOSCOW. June 13 (Interfax) - Swedish company Essity, which produces hygiene products under the brands Zewa, Libero and Libresse, transferred its Russian production facilities to the management of Russian shareholders; the production of the full product range will continue, the press service of Russia's Industry and Trade Ministry reported.

"Indeed, the management of the global Swedish company Essity has decided to leave the Russian market and transfer the right to manage its production facilities to Russian shareholders. The activity of the enterprise will continue, and the decision will not affect the range and volume of products, nor will it affect its value," the ministry said in a statement.

Jobs at the production facilities will be preserved, the Ministry said. "The Russian Ministry of Industry and Trade is aware of the situation and is closely monitoring the process of rights transfer and the further operation of the enterprises through constant contact with the new owners," the ministry said.

Essity said on Saturday that it had entered into an agreement to sell its assets and received approval for the deal from the Russian authorities. The company expects the transaction to close in the second quarter of 2023.

The curtailment of the company's activities in Russia began in April 2022, Essity said. At the end of the year, its assets were depreciated approximately 1.7 billion Swedish kronor. In 2022, Essity's net sales in Russia accounted for about 2% of the group's total sales.