Finnish coffee brand Paulig has sold the shares in its Russian subsidiary to a local private investor, the firm announced in a press release on Thursday.
Paulig's operations in Russia included a coffee roastery in the city of Tver and the employment of about 200 employees, all of which will transfer to the new owners. The value of the transaction was not disclosed and the Paulig brands and recipes were not included in the sale, the company added.
"Due to Russia’s attack on Ukraine and changes in geopolitical situation, we concluded that continuing business in Russia was no longer responsible nor viable and initiated a withdrawal process. Considering our employees, customers and local legislation, the sale of the business was the best solution for the exit," said Rolf Ladau, CEO of Paulig.
Paulig had previously announced its intention to withdraw from Russia on 7 March.
Over the next few months, the brand will be phased out in Russia and coffee supplies from Paulig to the new owner will also gradually cease.
The company's press release added that Russia only accounted for about five percent of Paulig's total revenue in 2021, meaning it would not have a significant impact on its business outlook.
Paulig has joined a slew of compatriot Finnish companies selling off their assets in Russia, including Valio, Fazer, Nokia, and many more.
Let us know what you think in the comments below. You'll need an Yle ID to join the discussion, which you can sign up for here. Comments are open on a trial basis until 13 May, and moderated between 10 and 17:30 each weekday.