A FOREST industrial group will sell its forestry businesses in Russia following the invasion of Ukraine.
Stora Enso has announced its two sawmills and felling rights on 370, 000 hectares of land are to be sold off to "local management", providing a sustainable long-term solution for the more than 500 people employed across the sites.
Located in Novgorod and Karelia, the sawmills have a total annual capacity of 350,000 m3 of sawn timber, including 55,000 m3 of processed timber and 65,000 tonnes of pellets.
READ MORE: Russia's invasion of Ukraine casts doubt on stability of timber market in 2022, says TTF
A statement from Stora this morning read: "Stora Enso has entered into an agreement to divest its two sawmills in Russia.
"The company’s Nebolchi and Impilahti sawmills will be divested to local management. In addition, the divestment includes Stora Enso’s Russian forest operation which through its harvesting supplies wood to the sawmills.
"Stora Enso’s assessment is that due to the uncertainties in the Russian market, local ownership and operation can provide a more sustainable long-term solution for these business operations and the employees working there."
Like many forestry firms, Stora Enso previously announced it would stop all production and sales in Russia until further notice due to the invasion.
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