Mondi Advances Exit from Russian Asset; Cesar Group Consolidates Deal

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Mondi, the Austrian group, has finalized the bulk of its exit from a major Russian asset by completing the principal portion of the sale of Mondi Syktyvkar LPK JSC. The enterprise said it received 57 billion rubles from the buyer Cesar Group, according to a report from TASS. The remaining 23 billion rubles are scheduled to arrive in two equal installments in November and December 2023, marking Mondi’s full withdrawal from the Russian operation.

Earlier in September, Mondi disclosed the disposal of the Syktyvkar forestry complex to Cesar Group for 80 billion rubles. An earlier attempt to transfer the business in August to a different buyer for 95 billion rubles collapsed, leaving Cesar as the confirmed purchaser. This sequence underscores how a complex negotiation process can shape the final terms of large-scale asset exits in challenging markets.

The Syktyvkar timber processing plant has long stood as Russia’s largest producer of paper and cardboard, generating employment for around 4,500 people. In 2022, the enterprise reported revenues of about 1.085 billion euros, reflecting its pivotal role in the regional paper products sector and Mondi’s broader European supply chain footprint.

In a separate development, it emerged that a Danish company halted a licensing arrangement with a Russian producer, leading to a prohibition on bottling under the Tuborg, Kronenbourg, and Holsten brands. The decision, attributed to Carlsberg, followed Putin’s move to transfer Baltika’s assets to state ownership. Copenhagen clarified that negotiations with the Russian side regarding market exit no longer appear feasible, signaling a shift in cross-border brand operations and licensing strategies in the current environment.

Earlier reports noted discussions among financial institutions about related exits, with Raiffeisenbank and Uniqa reportedly considering sales tied to Raiffeisen Life as part of broader restructuring and portfolio optimization moves. This backdrop highlights how Russia-related transactions intersect with wider European corporate strategy and capital flows, influencing both asset valuations and strategic commitments across the region.

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