The UK’s Mondi has completed the deal to sell its remaining facility in Russia to Sezar Invest, a division of Moscow’s real estate developer Sezar Group.

The deal marks Mondi’s complete exit from the Russian market.

The transaction involved the sale of Mondi’s joint stock company (JSC), Mondi Syktyvkar, along with two affiliated entities to Sezar Invest.

This deal has been completed for a total cash consideration of Rbs80bn ($804m).

The British packaging company said it has received approximately Rbs57bn into its London bank account and is now in possession of a letter of credit worth Rbs23bn.

The amount of Rbs23bn will be paid to the UK company in two equal installments – in November and December this year.

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Mondi said that it is now planning to distribute the net proceeds from the sale of all its Russian assets to the company’s shareholders in a timely manner.

This distribution will take place after the company receives the final instalments of the consideration related to Mondi Syktyvkar.

Last month, Mondi entered into an agreement to sell its last remaining Russian facility to Sezar Invest.  

Located at Syktyvkar in Russia’s Komi Republic, Mondi Syktyvkar is a wholly owned integrated pulp, packaging paper and uncoated fine paper facility.

It mainly addresses the demand for uncoated fine paper and containerboard in the domestic Russian market.

The facility provides employment to approximately 4,500 people.

The UK-based packaging company was initially involved in a potential deal to sell its Syktyvkar facility in Russia along with two other affiliated entities to Augment Investments.

Later in June 2023, the company announced a withdrawal from its agreement with Augment Investments due to the “lack of progress” from Augment’s side in obtaining the required approval for deal completion.

Following the termination of the deal with Augment, Mondi continued to consider other alternatives to divest the remaining Russian business.