Knauf Group's Failed Sale in Russia: A Setback Amid EU Tensions

Knauf Group's attempt to sell its Russian operations has failed, as an unnamed buyer withdrew. Despite ongoing sanctions, the company continues local operations under Russian management. This setback highlights challenges faced by European firms in Russia amid EU support for Ukraine against Russia.

Knauf Group, a German family-owned company, announced Tuesday its unsuccessful effort to exit the Russian market. Attempts to sell its Russian operations, ongoing since April last year, fell through as a prospective buyer backed out.

Currently, Knauf's Russian segment will continue under local management, adhering to all imposed sanctions. The company, producing gypsum boards and drywall systems, originally aimed to finalize a sale by April 2024, maintaining operations involving over 4,000 employees.

This development mirrors the broader challenges European businesses face in Russia, amidst the EU's initiatives to support Ukraine and impose sanctions on Russia following its 2022 invasion. Strategies include utilizing frozen Russian assets for Ukraine's rebuilding efforts.

(With inputs from agencies.)