16:24 - 22.04.2022

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April 22, Fineko/abc.az. Swedish manufacturer of personal care products Essity ceases its activities in Russia.

ABC.AZ reports that the company that owns Zewa, Libero and Libresse, announced its withdrawal from the Russian market because of the deterioration of business conditions against the background of the application of sanctions.

"Essity's conditions for doing business in Russia have deteriorated. As a result, the company's assets in Russia were depreciated by about 1.4 billion Swedish kronor ($147 million). In addition, work has begun on exiting the Russian market. In 2021, Essity's net sales in Russia amounted to about 2.8 billion Swedish kronor, which corresponds to about 2% of the total net sales in 2021," company’s CEO Magnus Groth said.

He also informed about a significant increase in product prices, which will continue to grow in the coming quarters.

Groth also noted that he intends to sell his factories in Russia. The company will no longer hire Russian employees, but the companies can be sold to other owners.