International Paper to sell interest in Russian company

International Paper announced Tuesday it has entered an agreement to sell its 50% interest in Russian company Ilim Group, a major Russian forest products company.

International Paper plans to sell its interest in Ilim Group to its joint venture partners for $484 million, according to a news release from the company. The sale is subject to regulatory approvals in Russia, according to International Paper.

International Paper first considered selling its initial 50% interest in Ilim Group in March 2022 following Russia’s invasion of Ukraine.

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Since 2007, International Paper operated a 50-50 joint venture with Ilim Group, which is led by billionaire Zakhar Smushkin and his colleagues. International Paper spent about $650 million for a 50% stake in the company.

Together, International Paper and Ilim Group worked to harvest Russian trees, process them into wood pulp and export the products, mostly to China.

A Yale University project has identified more than 1,000 companies that have curtailed their Russian operations, including Memphis-based FedEx.

Omer Yusuf covers the Ford project in Haywood County, FedEx, tourism and banking for The Commercial Appeal. He can be reached via email Omer.Yusuf@commercialappeal.com or followed on Twitter @OmerAYusuf.

This article originally appeared on Memphis Commercial Appeal: International Paper to sell interest in Russian company