Finnish food company Fazer exits all operations in Russia

By Ovunc Kutlu

ANKARA (AA) - Major Finnish food company Fazer announced it has decided to exit all its operations in Russia amid the war in Ukraine.

"We see no other solution than to exit Russia. Russia’s attack on Ukraine is an act of aggression which has tragic consequences across the region," Fazer Group President and CEO Christoph Vitzthum said in a statement on Sunday.

"We have several stakeholders and severe consequences to take into consideration, which has not allowed us as fast an exit as we would have wished for. We have worked relentlessly and as fast as possible, taking possible risks and threats into consideration," he added.

Fazer said last week it has suspended all exports of its confectionery, grain and bakery products from Finland to Russia and stopped all investments.

The company has three bakeries in St. Petersburg, and one in Moscow, employing approximately 2,300 people in Russia.

In 2021, Fazer's net sales from Russia totaled approximately €157 million ($170 million), accounting for 13% of its sales.

Another Finish food firm Raisio also announced last Thursday it has stopped all exports to Russia, saying this will result in a 15% reduction of its sales.

Raisio said its exports to Russia consisted of consumer packed foods and fish feed.

"Due to the geopolitical instability the prices of important grain based raw materials have risen dramatically. In addition to the unforeseen cost effects the situation affects also availability of grain based raw materials," it said in a statement.