AMSTERDAM (Reuters) – Dutch paints and coatings maker Akzo Nobel (OTC:) expects its 4 vegetation in Russia to be out of enterprise inside just a few months as a result of financial sanctions and a scarcity of uncooked supplies, its chief government advised the Monetary Occasions in an interview revealed on Monday.

“We’re fairly practical that over a month, two month interval this may come to a gradual, if not regular phasing out of the enterprise,” CEO Thierry Vanlancker stated about Akzo’s Russian operations.

“It is both as a result of the uncooked supplies aren’t accessible anymore, or it’s as a result of someplace the primary buyer could not be capable of pay.”

The merchandise Akzo produces for retail and industrial purchasers in Russia don’t fall below any sanctions regime, firm spokeswoman Diana Abrahams advised Reuters.

Nevertheless, she stated the corporate’s provide chain in Russia was being affected by the influence of the battle in Ukraine and sanctions imposed by Western international locations towards Russia.

“… it’s clear that even merchandise that aren’t sanctioned are and will probably be hit. The entire chain from provides to clients is disrupted,” she stated.

Abrahams stated Akzo seems every day to see what it may do to assist its 640 staff in Russia and its workers of 17 in Ukraine, with out giving additional particulars.

Akzo’s 4 Russian vegetation generate annual gross sales of round 200 million euros ($219 million), or simply over 2% of its whole income of 9.6 billion euros final 12 months.