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Companies sell their businesses in Russia -Breaking


© Reuters. FILE PHOTO – A Pizza Hut store is seen at a Shanghai mall on September 18, 2018. Photo taken September 18, 2018. REUTERS/Aly Song


(Reuters) – Some Western companies are willing to sell or transfer their Russian assets to local managers in order to meet sanctions on the Ukraine conflict. They also need to deal with Kremlin threats that assets owned by foreign countries could be seized.

These moves are part of an overall corporate exodus out of the country and are likely to raise concerns about Russian institutions buying up valuable assets in exchange for bargains.

The following is a list by sector of companies that have made deals to sell businesses in Russia.



British car distributor, Car Distributors Ltd. announced on April 28 that it agreed to sell the Russian business to local management at 76 million Euros ($79.9 Million). The sale would result in a remarkable non-cash loss of around 240million pounds before taxes ($295.2 million).

RENAULT On May 16, the French carmaker announced that it was selling its major stake in Russia’s largest carmaker Avtovaz to a Russian science institution for one rouble. There is a 6-year option to purchase it back.

Renault (EPA) Also, it was stated that the 100% share in Renault Russia would go to Moscow.



Czech Investment Group confirmed that they had sold 100 percent of their Russian assets (consumer lender Home Credit and Finance Bank and subsidiaries) to Ivan Tyryshkin’s group of investors on May 31.

SOCIETTE GENERALE On May 18, the French bank announced that it had sold Rosbank, its Russian-owned business, to Interros Group. Interros is a Russian company linked to Vladimir Potanin.

This sale will see the bank take a loss of net income equal to 3.2 billion euro ($3.4 billion).



French equipment manufacturer Electrolux will transfer its Belarus and Russia operations to the local management. The company announced this on April 27th when it signed a letter stating that the intention was with the buyers.

The company will deduct up to 300,000,000 euros (315.5 Million) in net book value, and perform a non-cash reverse of currency translations estimated at 120,000,000 euros.



It was announced by the Italian utility that on June 16, it would sell its 56.43% stake. Enel Russia, for around 137 million Euros ($144.1 Million), to Russia’s 2nd-largest oil-producer, Lukoil. GazprombankFrezia was also purchased. According to the statement, it was stated that the sale could have a negative effect on group’s reported income of around 1.3 million euros.


On May 25, the Norwegian oil and natural gas company announced that it had ended its Russian oil and gaz joint ventures and transferred its assets to Rosneft, which is its long-term partnership. Equinor has also agreed to leave the Kharyaga oil plant.


Kommersant newspaper reported that the Finnish utility company intends to sell Russian energy assets by July 1. Sources familiar with the matter said this on June 14.

According to the RIA news agency, T Plus was reported by Russia’s energy giant T Plus on June 16. TASS reports that Gazprom could be interested in acquiring Fortum’s shares in TGK-1 regional Russian power company MCX.


British energy giant and petrochemical company Shell will sell Russia’s Russian retail and Lubricants business to Russia’s Lukoil. The companies announced this on May 12. Shell (LON 🙂 did not provide any comment about the transaction’s worth.



On April 22, the Dutch brewer announced that it was selling its Russian non-controlling stake in AB InBev Efes. It also took a $1.1 million impairment charge for the first quarter.


Finnish food processors announced that it had sold SibyllaRus in Russia to Cherkizovo on May 16, for approximately 8 million euros (or $8.4million).


Finnish bakery and foodservice company, Fazer, announced that on April 29, it was selling its Russian division to Moscow’s Kolomenskij Bakery and Confectionery Holding. Fazer has not disclosed the purchase price.


American fast-food giant McDonald’s announced on May 19 that it was selling its Russian licensee Alexander Govor. The restaurants will continue to operate under a different brand. However, the company did not reveal the financial terms.


Finnish private food and drink manufacturer Vikas Soi announced that on May 5, it sold Russia’s operations to a Vikas Soi investor in India.


Pizza Hut Russia franchise was purchased from Poland-listed franchisor AmRest By Noi-M. Noi-M is linked with restaurant group Rosinter, which operates Russian franchises for Costa Coffee and T.G.I. Kommersant reported that Friday’s was for $300 Million Rupees (or $5.3 Miillion) on June 7.


According to the Finnish food processing firm, it announced on April 29 that it agreed to sell Russia’s consumer businesses to Copacker Agro Ltd. It was estimated at 1.5 million euros (1.6 million).


GK Velkom purchased the Russian dairy business of the Finnish producer of Finnish milk, according to the company’s statement on April 26. Valio did not provide any financial information.



On May 9, the London-listed Russian mining firm announced that it would sell its Kun-Manie main project to Stanmix Holding Limited for $105 Million. This company is controlled by Vladislav Vviblov.


Canadian gold miner, Goldcorp Inc. reported on June 15, that its Russian assets had been sold to Highland Gold Mining Group. The cash payment was $340 million. That’s half the previous price.



Apator, a Polish manufacturer of metering devices and switchgear, announced that it had sold all its stakes in Russia-based AO Teplovodomer to its Powogaz unit for $5 million ($88.496).


FLO Magazacilik, a Turkish footwear retailer, has been in discussions to purchase more than 100 retail stores in Russia owned by Reebok. Ziylan stated that no deal had been reached.


According to the company, Russian activities are being sold by Dutch employees services companies.


On April 8, the Danish paint manufacturer stated that it initiated sales of Russian and Belarusian businesses, taking a write-down of 115 million Danish Crowns ($16.2 Million).


British tobacco giant said that its deal to sell Russia’s business to Russian investors to “investors based abroad” had been closed on May 17. It also did not have a provision that allowed it to buy its Russia business back in the future. For the transaction, the group previously claimed it had already charged a charge of around 225million pounds ($276.7 million).


Polish clothing retailer, Polish Clothing Retailer announced May 19 that it was selling RE Trading Russian Company to a Chinese consortium.


It announced that the Danish shipping firm has identified potential buyers for its stake of Global Ports Investments at 30.75%. This company operates Russian ports.


On June 2, the Swiss industrial company announced that it reached an agreement with Russian management in order to sell its Russian business. The new owners will allow Russia to continue its independent operations.


Finnish training firm said that it sold Russia’s unit to local management on May 19. The company added that the sale would not impact the company’s financial results.


It announced on May 16 that the Finnish forest company has closed its Russian exit with three plants of corrugated packaging sold to local management.

Stora reported in April it agreed to sell its Russian sawmills, as well as their forest operations, to local management. It also suffered a 136.7 million Euro ($130 million) loss.


Finnish builder, Etalon Group PLC announced on May 30 that it had completed the sale in Russia of its Russian business to Etalon Group PLC at the earlier agreed price of approximately 50 million Euros ($52.6 Million).


Swiss Insurer stated on May 20, that they had reached an agreement to sell their Russian business to eleven members of the team.

($1 = 0.8131 pounds)

($1 = 0.9508 euros)

($1 = 56.5000 roubles)

($1 = 7.0809 Danish crowns)