(Reuters) – Some Western companies have agreed to sell their Russian assets or hand them over to local managers as they take action to comply with sanctions over the Ukraine conflict and deal with threats from the Kremlin that foreign-owned assets may be seized.
The moves, part of a broader corporate exodus from the Russia, are likely to prompt concerns that Russian companies and institutions are snapping up prize assets at bargain prices.
Below are some of the companies by sector that have secured deals to sell their businesses in Russia:
AUTOMAKERS
RENAULT The French carmaker sold its majority stake in Avtovaz to the Russian state in 2022, reportedly for only one rouble but with a six-year option to buy it back.
BANKS
SOCIETE GENERALE The French bank sold its Russia business Rosbank in May last year to Russia’s Interros Capital, taking a 3.1 billion euro ($3.38 billion) hit.
ELECTRICAL COMPONENTS & EQUIPMENT
SCHNEIDER ELECTRIC
The French electrical equipment maker closed the sale of its operations in Russia to local management in September.
It said in April it would write off up to 300 million euros of net book value and make a non-cash reversal of currency translation estimated at 120 million euros.
ENERGY
BASF
The German chemicals group said in January it would take a 7.3 billion euro writedown as its Wintershall Dea energy business pulls out of Russia
BASF owns 67% of the voting rights in Wintershall, with the rest being held by Letter One, a holding company controlled by Mikhail Fridman.
SHELL
The British energy and petrochemical company in May completed the sale of its Russian retail and lubricants business to Russia’s Lukoil.
Russian President Vladimir Putin has agreed that Novatek transfers 94.8 billion roubles to Shell for its stake in the Far East Sakhalin-2 gas project, Kommersant reported on April 4.
FOOD & BEVERAGES
AB INBEV
The brewer said on April 22, 2022 it would sell its non-controlling stake in its Russian joint venture AB InBev Efes, taking a $1.1 billion impairment charge.
CARLSBERG
Carlsberg, the Western brewer most exposed to Russia, said last year it expected a writedown of about 9.9 billion Danish crowns after announcing a sale of its business in the country.
Carlsberg said it expects to have found a buyer and signed an agreement by June.
MINING
KINROSS
The Toronto-based miner in June last year sold all of its Russian assets to the Highland Gold Mining Group for $340 million in cash, half of the previously announced price.
RESTAURANTS & RETAIL
AUTHENTIC BRANDS GROUP
The Russian business of Authentic Brands Group-owned Reebok has been taken over by Turkey’s FLO retailing, Kommersant daily reported on May 16.
INDITEX
Russian government had approved a deal for Spain’s Inditex to sell its Russian business to a UAE-based buyer. Inditex had more than 500 stores in the country and agreed to sell them in October.
MCDONALD’S CORP
The U.S.-based restaurant chain sold last year its business in Russia after more than 30 years of operating in the country, taking a charge of $1.28 billion.
OTHERS
HUHTAMAKI
The Finnish maker of packaging for food and beverages sold its operations in Russia in September for 151 million euros to Espetina Ltd, a company belonging to the owner of McDonald’s former restaurants in Russia.
IMPERIAL BRANDS
The British tobacco group announced the transfer of its Russian business to investors based in Russia in April 2022.
MAERSK
The shipping and logistics group has agreed to sell its two logistics sites in Russia to IG Finance Development Limited.
In August last year, Maersk sold a 30.75% stake in Russian port operator Global Ports Investments to Russia’s largest container operator Delo Group.
STORA ENSO
The Finnish forestry firm has completed its exit from Russia with the sale of three corrugated packaging plants to local management, it said on May 16, 2022.
YIT
The Finnish builder completed the sale of its businesses in Russia to Etalon Group in May 2022.
($1 = 0.9180 euros)
(Compiled by Augustin Turpin, Agnieszka Gosciak, Matteo Allievi and Praveen Paramasivam; Editing by Mark Potter, Jan Harvey, Andrew Heavens, Sriraj Kalluvila and Jane Merriman)
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