Food And Beverage
Privately owned packaging firm Tetra Pak said it would exit its remaining Russia operations after 62 years in the country and divest its business there.
The firm said local management would run the operation as an unaffiliated entity under a new name.
Scores of Western firms have left Russia or announced their intention to do so after the Russian government sent tens of thousands of troops into Ukraine across the border on February 24 in what the government calls a “special military operation,” drawing widespread sanctions and condemnation.
Tetra Pak in March suspended all new investments and projects in Russia, limiting its operations to essential food items—something it intends the new entity to continue to provide continuity for customers and minimize the impact on employees.
Tetra Pak, in a statement, said the exit was due to the cumulative impact of the restrictions on exports to Russia, leading to an unsustainable supply chain, resulting in the firm being left with another option than to exit the country.
Following the transfer of ownership, the new firm will operate as an independent entity under a new name and will not be affiliated with Tetra Pak.