Food packaging and processing company Tetra Pak is handing over its Russian division to local management due to the inability to support the company's operations, the company said in a statement.
Due to the cumulative impact of export restrictions on Russia, which have disrupted supply chains, Tetra Pak can no longer continue to support its operations in Russia, according to the statement.
"In order to ensure the continuity of the business of our customers, as well as to maintain the availability of essential products, the company has decided to transfer its Russian division to a local management team," the company said.
The new company will continue to operate as an independent entity that will focus on the production of packaging at a facility in the Moscow region, as well as on the development of reliable supply chains with a growing share of local suppliers, according to the statement.
Earlier the Dagens Nyheter newspaper reported that the National Board of Trade in Sweden denied Tetra Pak's request to continue exporting its products to Russia.
Tetra Pak is a global leader in food processing and packaging solutions. The company employs over 25,000 employees worldwide.
The Tetra Pak plant is located in the town of Lobnya near Moscow. This is the largest enterprise in Russia and Eastern Europe for the production of packaging for liquid food products.