Putin Decree Puts Ontex Russia Under Interim Administration
A Russian decree placed Ontex’s local subsidiary under interim administration, as four other foreign companies’ Russian assets were also affected.
Key takeaways
- Ontex Russia was placed under interim administration under a decree dated October 15.
- The decree also covers Russian assets linked to four other foreign companies.
A Russian presidential decree dated October 15 placed Ontex’s local subsidiary, Ontex Russia, under interim administration. Four other foreign companies’ Russian assets were also affected, with shares in their Russian packaging businesses placed under the temporary management of Center Capital, according to Dünya.
Ontex said a government-appointed interim administrator has assumed operational control. The subsidiary employs around 350 people and operates a production facility in Noginsk and a sales office in Moscow.
Ontex said the Russian business represents about 5% of group revenue and 7% to 8% of adjusted EBITDA under IFRS consolidation rules. The company is investigating the situation and will consider steps to safeguard its assets and the continuity of operations.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
