The International Paper announced Tuesday that it has signed a deal to sell its 50% stake in the Russian company Ilim Group, Russia’s leading forest products company.
According to the company’s news release, International Paper plans to sell its ownership interest in Ilim Group to a joint venture partner for $484 million. The sale is subject to Russian regulatory approval, according to an international paper.
The International Paper first considered selling its first 50% stake in Ilim Group in March 2022 following Russia’s invasion of Ukraine.
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Since 2007, International Paper has operated a 50/50 joint venture with the Ilim Group, led by billionaire Zakhar Smushkin and his colleagues. International Paper spent about $650 million to acquire his 50% stake in the company.
International Paper and Ilim Group worked together to harvest Russian trees, process them into wood pulp, and export the products primarily to China.
A Yale University project identified more than 1,000 companies that have reduced their operations in Russia, including Memphis-based FedEx.
Omer Yusuf is responsible for banking operations for Ford Projects, FedEx, Tourism and The Commercial Appeal in Haywood County.you can contact him by e-mail Omer.Yusuf@commercialappeal.com Or follow us on Twitter @OmerAYusuf.