Australasia's home for timber news and information

Russia suffers from corporate exits, but some companies remain

Aleksey Mordashov, head of the board of directors of Severstal, which also owns the leading Russian birch plywood producer Sveza, said that the volume of production in its plywood business and in steel has dipped sharply. Sources: Lesprom, Timberbiz

“We exported 80% of our products. We have to send people on layoffs with two-thirds [of their salary],” he said.

“The prosecutor’s office has sent us 15 requests since the beginning of the year. The State Labor Inspectorate sent us a bunch of inspectors to check. It all ended with the fact that we were given a warning about the need to comply with labor laws. Our directors are not only struggling with very acute production problems, but they also went to the prosecutor’s office to give an explanation,” he said.

“Now factories are working with a load of 20 to 40%, fulfilling current orders. At the same time, in order to prevent over production and over stocking, the company is forced to temporarily suspend production and send employees to downtime.”

To restore shipments, Sveza is actively looking for new sales markets and building new supply chains, but this takes time,” said Sveza representative to GorodChe website.

To add to more Russian troubles PPG has announced that its Russian company Tikkurila which accounts for a major share of the Russian paint market will wind down its business.

Nearly 1000 corporations have left the country, according to Yale University’s extensive database. However, that data show more than 400 major companies remain in the Russian market. These companies include Subway, Domino’s Pizza, Nestle, Red Bull, Toshiba, Lenovo, Huawei, ING Bank, HSBC, Etihad, Qatar, Air China.

Yale School of Management is maintaining a full list of companies that have exited and those that have stayed you can access it at: