Multinational paper and packaging firm Mondi has decided to divest its assets in Russia, making it the latest company to exit the country amid its invasion of Ukraine.

The announcement comes after the company revealed that its board was considering all options for the group’s interests, including legal separation due to the conflict, earlier this year.

Mondi has already suspended all its operations and significant capital expenditure projects in Russia on a temporary basis.

In a statement, the company said: “Having assessed all options for the group’s interests in Russia and recognising its corporate values and stakeholder responsibilities, the board has decided to divest the group’s Russian assets.

“The Russian businesses have, to date, managed supply chain constraints. However, the situation remains fluid, with interruptions to pulp and paper production possible going forward.”

Mondi said there could not be any certainty of the timing and structure of any possible transaction, given that the divestiture process is ‘operationally and structurally complex and is being undertaken in an evolving political and regulatory environment’.

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The company has three converting plants in Russia, which primarily serve the domestic market. It has 5,300 employees in the country.

As of 31 December 2021, Mondi’s net assets from its Russian operations were valued at €687m ($724.9m) and represented 12% of its revenue by location of production for the year.

In a separate development, the company has reported that it delivered a ‘strong’ first quarter of 2022, driven by robust demand and a ‘broad’ range of ‘innovative’ sustainable packaging and paper solutions.

Mondi’s underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) for the three months to 31 March grew by 63% to €574m compared with the corresponding period of the prior year.

In March this year, the company announced a €280m investment to boost its corrugated packaging production across Poland, Germany, the Czech Republic and Turkey.