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Segezha Group divests European subsidiary for debt assignment

The sale was the only option to keep the business operating because Segezha was unable to ship paper to the European subsidiary because of sanctions

MOSCOW, May 24. /TASS/. Segezha Group has sold its Europe-based Segezha Packaging subsidiary by assigning its 100 mln euro debt to buyers, President of the Russian timber holding Mikhail Shamolin told reporters during a conference call.

"The transaction was completed, approximately for one dollar," Shamolin said.

The debt of the European subsidiary to the parent company stands at about 100 mln euro. "It can be actually said that the business was sold for the amount around 100 mln euro, which corresponds to its status before sanctions," the senior manager said.

The sale was the only option to keep the business operating because Segezha was unable to ship paper to the European subsidiary because of sanctions.

The company sold its European business because it was unable to maintain its operations, Shamolin said this March. Segezha Packaging, the European subsidiary of the holding, comprised seven paper packaging plants in Germany, Denmark, Italy, the Netherlands, Romania, Turkey, and the Czech Republic.

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Russian troops mopping up enemy positions in Yelizavetovka in Donbass region — politician

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US, European officials suggest returning nukes to Ukraine — NYT

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"I am sure that neither of us is even aware right now of any new future developments," Dmitry Peskov said

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