FRANKFURT (Reuters) -German family-owned construction materials maker Knauf Group said on Tuesday that attempts to sell its business in Russia, ongoing since April last year, have failed.
The family-owned company with about 15.6 billion euros ($18.20 billion) in sales said in a statement an unnamed prospective buyer of the Russian assets had walked away from talks.
For now, the business would continue to be separately run by local management in Russia, “in full compliance with sanctions”, it added.
Knauf, a maker of gypsum boards, drywall systems and insulation slabs, said in April 2024 that it was working on a transaction to withdraw from Russia, where it has businesses including raw material extraction, manufacturing and sales with more than 4,000 employees.
The setback for the company, which echoes similar struggles by European companies with Russian operations, comes as the EU seeks ways to step up its support for Ukraine and its countermeasures against Russia’s attacks against its neighbouring country.
This includes work on using frozen Russian sovereign assets in the West to finance Ukraine’s defence and reconstruction after Moscow’s invasion of Ukraine in 2022.
($1 = 0.8571 euros)
(Reporting by Ludwig BurgerEditing by Madeline Chambers)
