Essity exits Russia: what changes for shoppers, factories, and the supply chain
The decision by Essity, the Swedish group behind brands such as Zewa, Libresse, and Libero, to exit the Russian market has sparked discussion about what happens next for everyday products. Analysts explain that this move does not cut off access to essentials. Instead, assets and production capacity are being reorganized under new management within Russia, a common step when a foreign operation leaves a country. Ownership often shifts to local partners who keep manufacturing and distribution humming along, so households still see familiar items on the shelves.
With the sale of Essity’s Russian business, local factories are expected to stay productive under different leadership. The aim is to keep supply chains stable and product availability steady while the buyers implement their plans. Brand lines and product variations will mostly stay the same, so households can rely on toilet paper and related products even as corporate names and ownership change behind the scenes. This kind of transition keeps the products in stores and the consumer experience unchanged, at least in terms of what ends up on the bathroom shelf.
Raksha notes that leaving a market rarely means asset liquidation. In many cases, foreign companies transfer assets on terms that keep the business running, protect jobs, and preserve value. The current strategy prioritizes minimizing disruption for both retailers and consumers who rely on daily hygiene essentials. The shift is framed as a relocation of management rather than a withdrawal from product availability, with continuity as the guiding objective.
The economist emphasizes that the products will remain in Russia, produced under new branding and management. This arrangement safeguards the familiar shopper experience while updating the corporate identity and ownership structure to reflect the new setup. In practice, shoppers should encounter the same quality and selection, simply labeled under the new corporate name aligned with the buyers’ compliance framework and strategic goals.
Essity announced on June 10 that it would wind down activities in the Russian Federation and proceed with selling its Russian operations. An agreement with buyers has already been signed, signaling that the transition is moving ahead. The company highlighted that the transaction received approval from Russian authorities and is expected to close in the coming months after the financial terms are settled. This sequence highlights the orderly nature of large cross-border restructurings, where regulatory clearance and settlements mark key steps in transferring control.
Earlier statements from Russia’s Ministry of Industry and Trade indicated that Essity would entrust the management of the Russian enterprises to Russian shareholders who would continue daily operations. This aligns with policy goals to sustain industrial activity, protect employment, and ensure consumer access to essential goods during a period of corporate realignment. It points to a broader plan to stabilize critical supply chains while international footprints adjust to changing market dynamics. The resulting setup is designed to offer continuity for retailers and households, supported by locally accountable management and compliance with domestic regulations.
From a practical viewpoint, the transition means ongoing availability of familiar items, with the branding evolving to reflect new ownership while keeping manufacturing operations in place. Stakeholders expect a smooth handover that preserves the reliability customers expect in everyday products. Government oversight and market safeguards remain in focus to ensure that households continue to access essential goods without interruption, even as corporate structures shift behind the scenes. .