Published: 16 August, 2023
In August 2023 Stora Enso completed two smaller outstanding transactions related to ownership in Russia-based harvesting companies. Following these transactions, Stora Enso is not a registered owner in any Russian legal entities and have thus fully concluded its exit from the Russian market. The transactions will have no significant impact on Stora Enso’s annual sales and Operational EBIT.
Published: 21 December 2022
In Stora Enso’s second quarter result 2022 it was stated that “minor formalities for the Russian legal entities in the wood supply operations, are expected to be finalised H2 2022”, thus completing Stora Enso’s exit from the Russian market. Due to a recent change by the Russian government related to the required closing procedures, the outstanding transactions have taken longer to conclude than originally anticipated and are thus still pending necessary approvals. These remaining smaller transactions, related to ownership in two Russia-based harvesting companies, are expected to be concluded in 2023. The transactions will have no significant impact on Stora Enso’s annual sales and Operational EBIT.
Published: 16 May, 2022
On 16 May 2022, we announced the divestment of our packaging operations in Russia. The Company’s Lukhovitsy, Arzamas and Balabanovo packaging plants have been divested to local management. The sites primarily produce corrugated packaging for grocery, home improvement, confectionery and pet food segments in the domestic Russian market. Stora Enso’s assessment is that, as with our sawmills and forest operations, due to the uncertainties in the Russian market, local ownership and operation will provide a more sustainable long-term solution for these businesses and their respective employees.
Published: 25 April, 2022
On 25 April 2022, we announced the divestment of our sawmills and forest operations in Russia. The Nebolchi and Impilahti sawmills will be divested to local management. In addition, the divestment includes Stora Enso’s Russian forest operation which supplies wood to the sawmills. Our assessment is that due to the uncertainties in the Russian market, local ownership and operation can provide a more sustainable long-term solution for these business operations and their employees. Pending necessary approvals, the transaction is expected to be concluded in Q2 2022.
Published: 2 March, 2022
We are shocked and saddened by Russia’s attack on Ukraine and its impact on international security and stability. Our priority now is the safety and wellbeing of our employees, and safeguarding our assets, operations and ability to deliver to our customers.
On 2 March, 2022, we announced that we will stop all production and sales in Russia until further notice due to the ongoing invasion, as well as all exports and imports to and from Russia. A mitigation plan to secure availability of input materials from other sources is activated.
Stora Enso has five units in Russia – two sawmills and three packaging plants – with a total of approx. 1100 employees. In Ukraine, Stora Enso has less than five employees and limited sales, although we have a number of employees with Ukrainian background throughout the company. The safety and wellbeing of all these employees is of utmost importance to us.
We are fully aligned with and strictly following EU and international guidelines around the implementation of sanctions against Russia. We have formed a dedicated crisis team to ensure we take every action needed to safeguard our people and business interests.
Stora Enso’s sales in Russia account for less than 3% of our total group sales, and our main imports from Russia have been wood and natural gas. Approximately 10% of the wood used in Finland’s operations has been sourced from Russia, although we do not own any forest there.
Stora Enso is supporting relief efforts through donations to UNHCR and encouraging our people to support local help organizations in any way they can. We hope for an end to the military conflict and for the safety and security of all affected.
