Food and beverage packaging companies in Russia are complaining about shortage of liquid packaging board. Industry experts trace the shortage to sanctions imposed on Russia by the West, which are also impacting the business of paper and board producers. The European Union added trading in paper, board and pulp in the middle of April to the sanctions package against Russia. Leading companies in liquid packaging are now responding by abandoning their Russia operations.
Global supplier of carton packaging and filing systems Elopak has now announced the sale its Russia activities to a local management, in a move similar to that announced by Tetra Pak at end of July. Following its decision in March 2022 to cease 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, Elopak writes in a press release.
The decision best secures the future of Elopak’s colleagues in Russia, the company adds. Under its new owners, the business will operate independently, while Elopak will cease business operations, the company underscores. The sale is not expected to impact Elopak’s business outside Russia and Elopak does not expect any significant impact from the sale on its balance sheet.
Completion of the transaction is reportedly subject to approval by the Governmental Commission on the Control over Foreign Investments in Russia.