Mondi, a South African-based paper and packaging company, has withdrawn from its agreement to sell its most significant asset in Russia, the Syktyvkar paper mill.
- The company had been in talks to sell the mill to Augment Investments, an investment vehicle majority owned by Russian billionaire Viktor Kharitonin.
- However, the deal fell through after Mondi was unable to secure the necessary approvals from Russian regulatory bodies.
- Mondi said in a statement that it was “disappointed” that the deal had not been able to be completed.
- The company said it would now focus on its other operations in Russia.
- Mondi’s decision to withdraw from the deal is a sign of the growing challenges facing companies operating in Russia.
- The Russian invasion of Ukraine has led to a number of Western sanctions being imposed on Russia, which has made it difficult for companies to operate in the country.