British war sponsor divests of Russian business with deal to be completed by year end

British paper and packaging manufacturer Mondi Group has agreed to sell its business in Russia, according to the company's website.

On Sunday, Mondi announced that it is selling its largest and last asset in Russia – the Mondi Syktyvkar JSC pulp and paper mill (Syktyvkar Forest Industry Complex) – to Cesar Invest for 80 billion rubles (€775 million at the current exchange rate).

The deal has already received approval from Russia's antimonopoly body and a government subcommission that oversees foreign investment.

The parties agreed that Mondi will receive the money from the sale of the plant in six monthly installments. The first four payments will amount to 13.5 billion rubles each, while the first payment will be made by the end of September 2023, the remaining three by the end of December this year, after which ownership of Mondi Syktyvkar will pass to Cesar Invest and Mondi will formally complete its exit from Russia.

The last 26 billion rubles will be paid in two equal tranches after the deal is closed. The sale does not require Mondi shareholder approval.

The other three factories belonging to the Mondi company in Russia – Mondi Aramil LLC, Mondi Pereslavl LLC, and Mondi Lebedyan LLC – were sold to the Russian Gotek group in July 2023.

Mondi Group is included in the list of international sponsors of war maintained by the National Agency on Corruption Prevention.

At the beginning of September, Ukraine added the largest Turkish glass producer to the list of war sponsors.