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Finnish consumer packaging company Huhtamaki has divested its Russian business to Espetina, a holding company owned by Alexander Govor and Iury Kushnerov.

The cash and debt-free transaction is valued at €151m ($150m).

As part of the deal, Espetina has acquired four manufacturing units in Russia, which employ a total of 724 people.

The divestiture comes after Huhtamaki revealed plans to sell its Russian operations in April this year as the country continued its invasion of Ukraine.

The company had also previously suspended all investments in Russia in response to the conflict.

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Huhtamaki president and CEO Charles Héaulmé said: “We consider that the current evolution of the situation and the long-term outlook in Russia will prevent the realisation of our growth strategy and long-term ambitions in the country.

“We are pleased to bring to a close the subsequent review of our strategic options in Russia.

“As part of the process, we conducted extensive due diligence to find the best possible buyer and future partner for our local employees – the safety and wellbeing of whom remain important to us.

“We feel that Espetina will be a good and committed owner for the business and the future of our employees.”

Huhtamaki expects to receive around €15m from this sale in the third quarter of the current fiscal year.

The deal is not expected to impact the company’s financial results for the year significantly.

In July this year, Huhtamaki reported a 31% increase in its net sales for the second quarter of the fiscal year 2022 (FY22), which stood at €1.14bn compared with €876.9m a year earlier.

Other packaging firms that have announced plans to sell their respective Russian businesses to local management include Tetra Pak, a subsidiary of Tetra Laval International (TLI), and the Norway-based company Elopak.