Western Companies Sell Russian Assets Amid Sanctions Compliance

Several Western companies have recently taken steps to sell their Russian assets or transfer ownership to local managers in order to comply with sanctions related to the conflict in Ukraine and address concerns of potential asset seizures by the Russian government. This trend of divestment has raised concerns about Russian companies and institutions acquiring valuable assets at discounted prices.

Here are some notable deals made by Western companies in various sectors:

1. Continental: The car parts manufacturer sold its Russian tyre plant to Russian holding company S8 Capital in May.

2. Renault: The French carmaker sold its majority stake in Avtovaz to the Russian state in 2022, reportedly for only one rouble but with a six-year option to buy it back.

3. Volkswagen: The German carmaker completed the sale of its Kaluga production plant and local subsidiaries in May.

4. Societe Generale: The French bank sold its Rosbank business to Russia’s Interros Capital in May 2022, incurring a 3.1 billion euro ($3.38 billion) loss.

5. Shell: The British energy and petrochemical company sold its Russian retail and lubricants business to Lukoil last year.

6. AB InBev: The Belgian brewer agreed to sell its stake in joint venture AB InBev Efes in April 2022, resulting in a $1.1 billion impairment.

7. Heineken: The Dutch brewer announced on August 25 that it had exited Russia after selling its operations to Russia’s Arnest Group for a symbolic one euro.

8. International Paper: The company sold its 50% stake in a joint venture to Russian shareholders in September.

9. Mondi: The British packaging company sold three packaging converting operations to Gotek Group and its largest plant in Russia to Sezar Invest.

10. Huhtamaki: The Finnish packaging maker sold its Russian operations.

11. Stora Enso: The forestry firm exited Russia by selling three corrugated packaging plants to local management last year.

12. AmRest: The restaurant operator closed the sale of its KFC business in Russia to Smart Service for 100 million euros in May.

13. Gazprombank Group: The company acquired 14 MEGA shopping centers in Russia from a unit of IKEA operator Ingka Group in September.

14. Inditex: Moscow approved the sale of the Spanish fashion retailer’s Russian business to a UAE-based buyer in April.

15. McDonald’s: The U.S.-based restaurant chain sold its business in Russia last year, incurring a charge of $1.28 billion.

16. British American Tobacco: The maker of Camel and Lucky Strike cigarettes announced on September 7 that it would sell its Russian and Belarusian businesses to a consortium led by members of its local management team.

17. Imperial Brands: The British tobacco group transferred its Russian business to investors based in Russia in April 2022.

These transactions reflect the ongoing corporate exodus from Russia as Western companies navigate the challenges posed by sanctions and geopolitical uncertainties. The impact of these divestments on the Russian business landscape remains to be seen.