To sell three Russian packaging converting operations.

Mondi plc has entered into an agreement to sell its three Russian packaging converting operations to the Gotek Group for a consideration of RUB 1.6 billion (around €24 million), payable in cash on completion.

The three packaging converting operations comprise a corrugated solutions plant and two consumer flexibles plants, producing a range of packaging solutions for the domestic Russian market.

The Gotek Group is one of the leading Russian packaging producers and is headquartered in Moscow. It employs around 2,200 employees across its business.

The Disposal is conditional on the approval of the Russian Federation’s Government SubCommission for the Control of Foreign Investments and customary antitrust approvals and is expected to complete in the first half of 2023.

The Disposal follows Mondi’s announcement on 4 May 2022 that, having assessed all options for the Group’s interests in Russia, it had decided to divest its Russian assets. The Disposal is not affiliated with the proposed disposal of Mondi Syktyvkar for which the approval of the Russian Federation’s Government Sub-Commission for the Control of Foreign Investments and customary antitrust approvals remain outstanding.

Mondi is a global packaging and paper producer, contributing by making innovative solutions that are sustainable by design. Their business is integrated across the value chain – from managing forests and producing pulp, paper and films, to developing and manufacturing sustainable consumer and industrial packaging solutions using paper where possible, plastic when useful. In 2021, Mondi had revenues of €7.0 billion and underlying EBITDA of €1.2 billion from continuing operations, and employed 21,000 people worldwide.