Food and beverage packaging companies in Russia are complaining about the shortage of liquid packaging board. Industry experts attribute the shortage to sanctions imposed on Russia by the West, which are also impacting the businesses of paper and board producers. The European Union added trade in paper, cardboard and pulp to the sanctions package against Russia in mid-April. Leading liquid packaging companies are now responding by exiting their operations in Russia.
Global paperboard packaging and filing systems supplier Elopak has now announced the sale of its Russian business to local management, in a move similar to that announced by Tetra Pak in late July. Following its decision in March 2022 to cease its business activities in Russia, Elopak conducted a review of all available options, based on which it reached an agreement to divest its Russian business (JSC Elopak), including its plant in St. Petersburg, writes Elopak in a press release.
The decision best secures the future of Elopak colleagues in Russia, the company adds. Under its new owners, the business will operate independently, while Elopak will cease trading, the company points out. The sale is not expected to impact Elopak’s business outside of Russia and Elopak does not expect any material impact from the sale on its balance sheet.
The completion of the transaction would be subject to the approval of the Government Commission for the Control of Foreign Investments in Russia.