MONDI PLC Pulls Out of Russian Market
Mondi PLC ( a major British paper manufacturer) recently announced that the company remains profoundly concerned about the war in Ukraine and is shocked by the humanitarian impact. The Company expresses its deepest sympathy to all those affected by the ongoing hostilities, reiterating its call for an urgent cessation and a peaceful resolution.
Since the announcement on 10 March, having assessed all options for the Group’s interests in Russia and recognising its corporate values and stakeholder responsibilities, the Board has decided to divest the Group’s Russian assets. 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. As of 31 December 2021, the net asset value of the Russian operations was €687 million.
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.