Finland-based food group Raisio is to sell its business in Russia to local firm Copacker Agro.
Raisio was among a clutch of mainly Nordic food manufacturers to decide to quit Russia in the days after the country’s invasion of Ukraine.
In a stock-exchange statement today (29 April), the company announced a deal to sell OOO Raisio Nutrition, the subsidiary responsible for its consumer business in Russia.
The announcement came 72 hours after Finnish dairy major Valio said it had offloaded its assets in Russia to another local firm, Velkom Group.
Raisio CEO Pekka Kuusniemi said: “We have strongly condemned Russia’s invasion of Ukraine. Due to the invasion, it is not possible for us to continue our operations in Russia and the decision to sell is in line with our values. The agreements concluded will allow a rapid and controlled exit from Russia. Under the current circumstances, the solution found is the best for both the company and the employees in Russia.”
Raisio’s Russian subsidiary has used the Nordic cereal trademark in the Russian and Belarusian markets. In those countries, the rights to the trademark will be sold to Estonian company Nordgate Trading Oü.
In addition to food products, Raisio has exported fish feed to Russia from Raisioaqua, a subsidiary operating in Finland. Those shipments were also suspended at the start of March in the wake of Russia’s forces entering Ukraine.
Raisio said it will book an impairment loss of EUR4.1m on Raisioaqua’s fixed assets against its group first-quarter EBIT.
Nestlé, PepsiCo, Unilever, Danone, Mars and Mondelez International are among those to have announced they are to suspend their investment in Russia but maintain the manufacturing and sale of certain food products.