May 19 (Reuters) - Some Western companies have agreed to
sell their Russian assets or hand them over to local managers as
they scramble 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
country, are likely to stir concerns that Russian firms and
institutions are snapping up prized assets for a bargain.
Below is a list of firms by sector that have announced deals
to sell their businesses in 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 about 240 million pounds
The French carmaker said on May 16 it will sell its majority
stake in Russia's biggest carmaker, Avtovaz, to the
Russian Central Research and Development Automobile and Engine
Institute (Nami), with a six-year option to buy back the stake.
Renault also said that 100% of the shares in Renault Russia
will go to the city of Moscow.
Russia had said on April 27 that Renault would transfer its
67.69% stake in Avtovaz to the institute for the symbolic sum of
The Czech investment group has agreed to sell its Russian
banking assets to a group of investors, PPF said on May 17.
PPF's consumer lender, the 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 transaction.
The French bank said on May 18 it had closed the sale of its
Russian business Rosbank to the Interros group, a firm
linked to Russian oligarch Vladimir Potanin.
The sale will result in the bank taking a 3.2 billion-euro
($3.35 billion) net income hit.
ELECTRICAL COMPONENTS & EQUIPMENT
The French electrical equipment maker will sell its
operations in Russia and Belarus to local management, the
company said on April 27, as it signed a letter of intent with
the designated buyers.
It will write off up to 300 million euros ($314 million) of
net book value and make a non-cash reversal of currency
translation estimated at 120 million euros.
The British energy and petrochemical giant will sell its
Russian retail and lubricants business to Russia's Lukoil
, the companies said on May 12. The deal includes 411
retail stations and the Torzhok lubricants blending plant. Shell
would not comment on the value of the deal.
FOOD & BEVERAGES
The Dutch brewer said on April 22 it would sell its
non-controlling stake in its Russian joint venture AB InBev
Efes. The divestiture will result in a $1.1 billion impairment
charge 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 it sold
its fast food business in Russia, Sibylla Rus, to Russian meat
producer Cherkizovo for about 8 million euros ($8.4
The Finnish bakery and food service company said on April 29
it had agreed to sell its Russian unit to Moscow's Kolomenskij
Bakery and Confectionery Holding. Fazer did not disclose the
value of the transaction.
The American fast food giant said on May 19 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 in the country, did not disclose the financial terms
of the transaction.
The privately owned Finnish food and drink company said on
May 5 it had sold its operations in Russia to private Indian
investor Vikas Soi, after being mentioned by Russian authorities
as an example of a foreign company that could be nationalised.
It said the divesture includes the Paulig Rus LLC unit and
Paulig's operations, as well as its coffee roastery in Tver, but
not the Paulig brand, which will be phased out in Russia over
the coming months.
The Finnish food processing company said on April 29 it had
agreed to sell its consumer business in Russia to Copacker Agro
Ltd for about 1.5 million euros ($1.6 million). As a result of
the sale, Raisio said it would recognise an estimated impairment
loss of 2.9 million euros in its Q1 earnings before interest and
The Finnish dairy producer has sold its Russian business to
GK Velkom, the company said on April 26, following an earlier
threat by Russian authorities to nationalise its business there.
Valio said the transaction would take effect immediately but
gave no financial value for it.
AMUR MINERALS CORP
The London-listed Russian mining company announced on May 9
it proposed to sell its main Kun-Manie project for $105 million
and agreed to assign to buyer benefit of all loans owed by
Kun-Manie to Amur in consideration 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 gold miner said on April 5, nearly
a month after suspending its operations in the country.
AUTHENTIC BRANDS GROUP
Turkish shoe retailer FLO Magazacilik is in talks to buy
more than 100 stores owned by fitness brand Reebok in Russia,
which is part of the Authentic Brands Group, FLO Chairman Mehmet
Ziylan said on May 16. Ziylan added a deal had not been
The Dutch employment services company is in the process of
selling activities in Russia to local management, it said on
April 29, adding its net investment in the country at end-March
was 14 million euros ($14.7 million).
The Danish paint maker said on April 8 it had initiated the
sale of its Russian and Belarusian companies, taking a 115
million Danish crowns ($16.2 million) write-down.
The British tobacco group said on May 17 that the terms of
its agreement to exit Russia did not include a clause allowing
it to buy back its business there in future.
Imperial Brands had announced the transfer of its Russian
business to "investors based in Russia" on April 20, following
talks with an unidentified third party in March.
The Danish shipping company has found possible buyers for
its 30.75% stake in Global Ports Investments, which
operates ports in Russia, it said on May 4.
The Finnish training company said on May 19 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 firm has completed its exit from Russia
with the sale of three corrugated packaging plants to local
management, it said on May 16.
At the end of April, Stora said it had agreed to sell its
two sawmills and their forest operations in Russia to local
management, causing it to record a 130 million euro ($136
The Finnish builder has signed an agreement with Etalon
Group PLC for the sale of its operations in Russia
for about 50 million euros ($52 million). As a result of the
sale, YIT said it would book an impairment of about 150 million
euros in its first quarter income statement.
($1 = 0.8022 pounds)
($1 = 0.9546 euros)
($1 = 7.1002 Danish crowns)
(Compiled by Elena Vardon, Augustin Turpin, Enrico Sciacovelli,
Editing by Mark Potter, Jan Harvey, Andrew Heavens and Susan