Kingspan sells Russian business while Kerry suspends activities

Ukraine invasion: Kerry Group shelves operations in Russia and neighbouring Belarus

Insulation maker Kingspan has sold its Russian business at a loss while food and ingredients specialist Kerry Group has suspended operations there and in neighbouring Belarus.

Both maintained they had been working to end or suspend their operations in Russia since shortly after its invasion of Ukraine.

Kingspan confirmed late on Monday that it had exited the Russian market and sold its business there to local management. It is understood that the Cavan-based multinational faces a small loss on the deal.

Kerry said that it was suspending operations in Russia and Belarus following consultations with stakeholders.


“This suspension will be managed in an orderly manner, during which the company will continue to pay employees and fulfil our legal obligations,” noted a statement from the company.

Kingspan indicated that it decided to leave Russia in early March, shortly after the invasion.

“It has taken several weeks to ensure that it could be completed in an orderly fashion, with the safety and welfare of our staff as a key priority,” said the company.

Kingspan will no longer sell its products in Russia, which accounts for less than 1 per cent of its overall business.

Kerry said the escalating humanitarian crisis is horrifying and that it had scaled back activities in Russia and Belarus over the last number of weeks.

Donation to Unicef

Kingspan said "we have made a $750,000 donation to Unicef for the set-up of five Blue Dot centres to assist refugees on the Ukrainian border and are also providing additional local supports".

Last week, Dublin-based paper packing giant Smurfit Kappa said it had decided to quit the Russian market.

“This exit will be effected in an orderly manner, during which we will continue to pay our employees and fulfil our legal obligations,” said Smurfit Kappa. “Our Russian business represents less than 1 per cent of forecasted sales.”

A company spokeswoman said it has about 800 employees in Russia and clarified that they would be paid until the exit completed.

The firm owns three plants in and around St Petersburg and it also bought a corrugated packaging plant in Moscow during 2017. It had been targeting significant growth in Russia prior to the invasion and the country being hit with sanctions.

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas