German building materials manufacturer Knauf has announced that it has not yet been able to reach an agreement on the sale of its business in Russia.
“Intensive negotiations over the past few months regarding the announced sale of its business in Russia have unfortunately not led to an agreement“, the company noted, claiming that the potential buyer has withdrawn from negotiations. “Knauf has not changed its plans to leave Russia. In extremely difficult circumstances, the company is exploring other possible options for this exit, while respecting the interests of its employees in Russia and in compliance with the current sanctions," the company said in a statement on its website.
Knauf noted that its business in Russia will for now operate separately from the company's other divisions “under local management“. At the same time, the concern assured that the Knauf Group does not receive any profit from its Russian business after the announcement of its plans to sell it and, in accordance with the sanctions restrictions, does not supply goods from Russia to the EU or, conversely, from the EU to Russia.
In April last year, Knauf announced its intention to transfer its Russian business to local management and abandon its activities in Russia after more than 30 years of operation.