March 14 (Reuters) - Swedish gaming company Embracer announced on Thursday it entered into an agreement to divest selected assets from the operative group Saber Interactive for $247 million, thereby ceasing all operations in Russia.

The buyer is Beacon Interactive, a company controlled by Saber Interactive co-founder Matthew Karch.

The transaction, which was the subject of speculation after a media report earlier this month, includes 38 ongoing game development projects, amounting to a book value of around 2.3 billion Swedish crowns ($224.76 million).

"Cash flow is immediately improved, and we remain committed to reducing net debt," said CEO Lars Wingefors in a statement.

Embracer said last month it may fall short of its March net debt target of 8 billion crowns, but that it was committed to a 12-month leverage goal and maximising shareholder value. ($1 = 10.2330 Swedish crowns) (Reporting by Jesus Calero; Editing by Jacqueline Wong and Muralikumar Anantharaman)