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Factbox-Companies sell their businesses in Russia

Economy Apr 29, 2022 09:56AM ET
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© Reuters. FILE PHOTO: A woman entries to a Polish fashion retailer LPP brand Reserved shop in Warsaw, Poland, September 4, 2020. REUTERS/Kacper Pempel/File Photo

(Reuters) -Some Western companies have agreed to sell their Russian assets or hand them over to local managers as they scramble to comply with sanctions over the Ukraine conflict and deal with threats from the Kremlin that foreign-owned assets may be seized.

The moves, part of a broader corporate exodus from the country, are likely to stir concerns that Russian firms and institutions are snapping up prized assets for a bargain.

Below is a list of firms by sector that have announced plans to sell their businesses in Russia:


RENAULT The French carmaker will transfer its 68% stake in Russia's biggest carmaker Avtovaz to an auto research institute for a symbolic one rouble, Russia said on April 27.


The British car distributor said it had agreed to sell its Russian business to local management. The sale will result in an exceptional non-cash loss before tax of about 240 million pounds ($300 million).


SOCIETE GENERALE The French lender said it would sell its Rosbank unit to Interros Capital, a firm linked to Russian oligarch Vladimir Potanin. SocGen said it would write off 3.1 billion euros, comprising a 2 billion-euro hit on Rosbank's book value and the rest linked to the reversal of rouble conversion reserves.


Hungary's OTP Bank, Central Europe's largest independent lender, is under pressure from the government of Ukraine, where the bank is also present, to sell its Russian unit, Chief Executive Sandor Csanyi said on April 27.



The brewer announced on April 22 it would sell its non-controlling stake in its Russian joint venture AB InBev Efes. The divestiture will result in a $1.1 billion impairment charge in the first quarter. The joint venture has 11 breweries in Russia and three in Ukraine.


The Danish brewer said on April 28 it was selling its Russian business. Chief Executive Cees 't Hart said there was good progress and "definitely" interest in it.


The Finnish dairy producer has sold its Russian business to GK Velkom, the company said on April 26, following an earlier threat by Russian authorities to nationalise its business there. Valio said the transaction would take effect immediately but gave no financial value for it.



The cigarette maker is in advanced talks to transfer its Russian business to Russia's SNS Group of Companies, its distributor, SNS said on March 18, after Moscow suggested it could nationalise assets of foreign firms that left the country.


The British tobacco group announced the transfer of its Russian business to investors based in Russia on April 20, following talks with an unidentified third party in March.


The Japanese company said on April 28 it was considering selling its Russian operations after suspending investment and marketing activities in the country last month.



The Dutch employment services company is in the process of selling activities in Russia to local management, it said on April 29, adding its net investment in the country at end-March was 14 million euros ($14.8 million).


The Danish paint maker said on April 8 it had initiated the sale of its Russian and Belarusian companies, taking a 115 million Danish crown write-down.


Chief executive of the German consumer goods group said on April 29 the group could "completely halt or sell (its) Russia business". It announced its intention to exit Russia on April 19.


The Finnish food packaging company said on April 29 it has decided to initiate the divestiture process of its operations in Russia.


The British exhibitions group has proposed selling its Russian business, citing warnings from customers that they would boycott its Western events if it continued to operate in the country. The group said on April 6 the proposed sale for a maximum price of 72 million pounds ($94 million) was also a result of compliance and operational challenges the company would face due to Western sanctions on Russia.


Kinross Gold (NYSE:KGC) Corp is selling its Russian assets to Highland Gold Mining group of companies for a total of $680 million in cash, the Canadian company said on April 5, nearly a month after suspending its operations in the country.


Polish clothing retailer LPP has decided to sell its business in Russia, the company said on April 28.


The French electrical equipment maker will sell its operations in Russia and Belarus to local management, the company said on April 27, as it signed a letter of intent with the designated buyers. It will write off up to 300 million euros ($319 million) of net book value and make a non-cash reversal of currency translation estimated at 120 million euros.


Finland's Stora Enso (OTC:SEOAY) has entered into an agreement to sell its two sawmills and their forest operations in Russia to local management, leading it to record 130 million euros in losses, the group said on April 25.


The Finnish builder has signed an agreement with Etalon Group PLC for the sale of its operations in Russia for about 50 million euros ($52.69 million). As a result of the sale, YIT said it would book an impairment of about 150 million euros in its first quarter income statement.

($1 = 0.9489 euros)

Factbox-Companies sell their businesses in Russia

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