Cos sell their businesses in Russia, Marketing & Advertising News, ET BrandEquity

McDonald’s said Thursday, May 19, 2022, it has begun the process of selling its Russian business to one of its licensees in the country. (AP Photo)

Some Western companies have agreed to sell their Russian assets or hand them over to local managers as they struggle to comply with sanctions over the Ukraine conflict and deal with Kremlin threats that foreign-owned assets could be seized.

The moves, part of a wider corporate exodus from the country, are likely to raise concerns that Russian companies and institutions are grabbing valuable assets for a bargain.

Below is a list of companies by sector that have announced agreements to sell their businesses to Russia:



The British car distributor said it had agreed to sell its Russian business to local management. The sale will result in an exceptional non-cash loss before tax of approximately 240 million pounds ($299 million).


The French automaker announced on May 16 that it would sell its majority stake in Russia’s largest automaker, Avtovaz, to the Russian Central Research and Development Institute for Automobiles and Engines (Nami), with an option redemption of the six-year stake.

Renault also said that 100% of Renault Russia shares will go to the city of Moscow.

Russia announced on April 27 that Renault would transfer its 67.69% stake in Avtovaz to the institute for the symbolic sum of one rouble.



The Czech investment group has agreed to sell its Russian banking assets to a group of investors, PPF announced on May 17.

PPF’s consumer lender, Home Credit and Finance Bank, and its subsidiaries will be acquired by investors led by Ivan Tyryshkin, PPF said, without giving the price or other details of the deal.


The French bank announced on May 18 that it had completed the sale of its Russian Rosbank business to the Interros group, a company linked to Russian oligarch Vladimir Potanin.

The sale will result in a net profit of 3.2 billion euros ($3.35 billion) for the bank.



The French electrical supplier will sell its operations in Russia and Belarus to local management, the company announced on April 27, signing a letter of intent with the designated buyers.

It will write off up to €300 million ($314 million) of net book value and perform a non-cash currency translation reversal estimated at €120 million.



The British energy and petrochemicals giant will sell its Russian retail and lubricants businesses to Russia’s Lukoil, the companies announced on May 12. The deal includes 411 service stations and the Torzhok lubricant blending plant. Shell would not comment on the value of the deal.



The Dutch brewer announced on April 22 that it would sell its minority stake in its Russian joint venture AB InBev Efes. The disposal will result in an impairment charge of $1.1 billion in the first quarter. The joint venture has 11 breweries in Russia and three in Ukraine.


The Finnish food processing company said on May 16 that it had sold its Russian fast food business, Sibylla Rus, to Russian meat producer Cherkizovo for around 8 million euros ($8.4 million).


The Finnish bakery and catering company announced on April 29 that it had agreed to sell its Russian unit to Kolomenskij Bakery and Confectionery Holding of Moscow. Fazer did not disclose the value of the transaction.


The US fast-food giant said on May 19 that it would sell its Russian business to its current licensee Alexander Govor and the restaurants would operate under a new brand.

McDonald’s Corp, which owns about 84% of its nearly 850 restaurants nationwide, did not disclose financial terms of the transaction.


The private Finnish food and drink company said on May 5 that it had sold its business in Russia to Indian private investor Vikas Soi, after being cited by Russian authorities as an example of a foreign company that could to be nationalized.

He said the divestiture includes the Paulig Rus LLC unit and operations of Paulig, as well as its coffee roastery in Tver, but not the Paulig brand, which will be phased out in Russia over the next few months.


The Finnish food processing company said on April 29 that it had agreed to sell its consumer business in Russia to Copacker Agro Ltd for around 1.5 million euros ($1.6 million). Following the sale, Raisio said it would recognize an estimated €2.9 million impairment loss in its first-quarter earnings before interest and tax.


The Finnish dairy producer has sold its Russian operations to GK Velkom, the company announced on April 26, following a previous threat from Russian authorities to nationalize its operations there. Valio said the transaction would take effect immediately but gave no monetary value. MINING


The London-listed Russian mining company announced on May 9 that it was offering to sell its main Kun-Manie project for $105 million and agreed to cede to the buyer the benefit of all loans owed by Kun-Manie to Amur for $30 million.


Kinross Gold Corp is selling its Russian assets to the Highland Gold Mining group of companies for a total of $680 million in cash, the Canadian miner said April 5, nearly a month after suspending operations in the country.



Turkish shoe retailer FLO Magazacilik is in talks to buy more than 100 stores belonging to fitness brand Reebok in Russia, which is part of the Authentic Brands group, FLO chairman Mehmet Ziylan said on May 16. Ziylan added that a deal has not been finalized.


The Dutch employment services company is in the process of selling its business in Russia to local management, it announced on April 29, adding that its net investment in the country at the end of March was 14 million. euros ($14.7 million).


The Danish paintmaker said on April 8 that it had initiated the sale of its Russian and Belarusian companies, taking a writedown of 115 million Danish kroner ($16.2 million).


The British tobacco group declared on May 17 that the terms of its agreement to leave Russia did not include a clause allowing it to buy back its activities there in the future.

Imperial Brands announced on April 20 the transfer of its Russian operations to “Russia-based investors”, following discussions with an unidentified third party in March.


The Danish shipping company has found potential buyers for its 30.75% stake in Global Ports Investments, which operates ports in Russia, it announced on May 4.


The Finnish training company said on May 19 that it had sold its unit in Russia to local management. The sale will not have a significant impact on the company’s results.


The Finnish forestry company has completed its exit from Russia with the sale of three corrugated packaging plants to local management, it announced on May 16.

In late April, Stora said it had agreed to sell its two sawmills and forestry operations in Russia to local management, posting a loss of 130 million euros ($136 million).


The Finnish automaker has signed an agreement with Etalon Group PLC to sell its operations in Russia for around 50 million euros ($52 million). As a result of the sale, YIT announced that it would record an impairment of approximately €150 million in its first quarter income statement.

McDonald’s has been in Russia for more than 30 years and owns around 84% of its approximately 850 restaurants in the country. Earlier this week, she became one of the biggest global brands to leave the country, while saying she would keep her brand.

Metro has operated its nationwide chain of 31 cash-and-carry stores since 2003, but intense competition and large investments to support operations have forced the Düsseldorf-based multinational to first undergo a detailed business review and then to choose to give the mandate of sale.

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