Multinational packaging and paper group Mondi has made a deal to sell its three Russian packaging converting operations to the Gotek Group for €24 million (about R440 million).
The Gotek Group is a leading Russian packaging producer headquartered in Moscow.
Mondi announced in May this year that it has assessed all options for the group's interests in Russia and decided to divest its Russian assets.
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The three packaging converting operations produce a range of packaging solutions for the domestic Russian market. Mondi expects to make a loss on the disposal of between €70 million and €80 million. The sale is subject to Russian regulatory approval and is expected to be completed in the first half of 2023.
Mondi also still awaits Russian regulatory approval for a separate deal involving the sale of its most significant facility in Russia, Mondi Syktyvkar. The agreement to sell it to Augment Investments for €1.5 billion was announced in August. The facility is an integrated pulp, packaging paper, and uncoated fine paper mill located in Syktyvkar.