21 Dec 2023 15:20

President Putin grants Dow Europe Holding permission to sell Russian subsidiary that produces polymer dispersions

MOSCOW. Dec 21 (Interfax) - Dutch Dow Europe Holding B.V. received permission to sell 100% of its company FINNDISP. The decree was signed by Russian President Vladimir Putin on December 21, and was published on the official portal for the disclosure of regulatory acts.

As per Presidential Decree No. 520 of August 5, 2022 "On the application of special economic measures in the financial and fuel and energy sectors in connection with the unfriendly actions of certain foreign states and international organizations," companies from "unfriendly" jurisdictions require special permission to transact with shares of strategic Russian companies (the requirement also applies to transactions, as a result of which the assets remain with the same final beneficiaries, changing only the jurisdiction of ownership).

Dow is a global company that produces advanced materials, such as plastics, industrial intermediates, coatings and silicones for the packaging, transportation and consumer products segments. Dow operates 106 manufacturing sites in 31 countries.

"FINNDISP is a recognized supplier in Russia and CIS of polymer dispersions used in variety of applications ranging from adhesive tape, to architectural and industrial coatings, and applied as lubricants in primers and water-based adhesives," Dow Russia & CIS says on its website.

FINNDISP LLC was registered in 2003 in Ramenskoye. In 2022, the company had a net profit of 123.6 million rubles against a loss of 223.1 million rubles the year before, despite the over 50% drop in revenue in 2022 to 748.1 million rubles.

In addition to FINNDISP, Dow in Russia controls Operating Materials Rus LLC (trade in operating materials and machine accessories), Dow Chemical LLC (wholesale trade of industrial chemicals) and Dow Izolan LLC.

Dow Izolan "serves a growing customer base in Russia and the CIS with a broad range of polyurethane systems for rigid and semi-rigid, flexible, integral polyurethane foams as well as adhesives and elastomers used in applications ranging from construction (pipe insulation, sandwich panels, decorative finishing, construction foams), to automotive, furniture, shoe soles and appliances," Dow says on its website.