Mondi to sell its Russian assets

Paper and packaging converter Mondi Plc said May 4 that it will sell its Russian assets, the latest company to exit the country following Moscow's invasion of Ukraine, reports Reuters.

Mondi says the net asset value of its Russian operations was about US$725 million as of Dec. 31 and that it has suspended all significant capital-expenditure projects in the country.

Mondi has operations in Russia, representing around 12% of the group's revenue by location of production, including a high-margin, cost-competitive, integrated pulp, packaging paper and uncoated fine-paper mill located in Syktyvkar (Komi Republic). These businesses primarily serve the domestic market and all are currently operational.

In Ukraine, Mondi has one paper-bag converting plant located in Lviv, west of the country, employing approximately 100 people. Production is currently suspended.

"Having assessed all options for the group's interests in Russia and recognizing its corporate values and stakeholder responsibilities, the board has decided to divest the group's Russian assets," Mondi says.

Hundreds of companies have suspended operations in Russia or withdrawn from the country completely since the war started due to complications of doing business there.

Mondi says there can not be any certainty on the timing and structure of any possible transaction, given that the sale process is "operationally and structurally complex and is being undertaken in an evolving political and regulatory environment."