Sweden’s Essity has announced the divestment of its operations in Russia, according to a statement released on Saturday. The company has finalized an agreement with a buyer, and Russian authorities have given their approval. The transaction is anticipated to be completed in the second quarter of 2023. Notably, Essity does not expect any significant financial impact resulting from the winding down of its Russian business.
This move comes after Essity, the world’s second-largest consumer tissue manufacturer, commenced its exit strategy from the Russian market in April. It had previously incurred a substantial write-down of approximately 1.7 billion crowns ($157.25 million) on its Russian assets. The company had already disclosed its intentions in March to cease all production and sales activities in Russia. In 2022, Essity’s sales in Russia amounted to 2.8 billion crowns, representing around 2% of its total sales.
Please note that the exchange rate between the Swedish crown and the US dollar stands at $1 = 10.8107 Swedish crowns.