Stora Enso’s 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 the employees working there.
The transaction is, pending necessary approvals, expected to be concluded within Q2 2022 and will have no material impact on Stora Enso’s annual sales and Operational EBIT. Due to decreased business prospects on these businesses, an impairment loss of €70m has been recorded in the first quarter result. The additional loss on the transaction under IFRS will be approximately €60m, consisting mainly of currency translation adjustments to be recorded at the closing date. The expenses are considered as items affecting comparability.
Stora Enso announced on 2 March 2022 that it would stop all production and sales in Russia until further notice. The group is in a process to find a sustainable solution for the future of its three packaging plants in Russia.