Germany's Knauf transfers Russian assets to management with two-year option, deal awaiting commission approval - Yevtukhov

ST. PETERSBURG. June 10 (Interfax) - Germany's Knauf Group, which manufactures construction materials, intends to sell its Russian business to local management with a buyback option within two years, though the deal is still waiting to receive government approval, Russia's Deputy Industry and Trade Minister Viktor Yevtukhov told reporters.

"Knauf is transferring the asset to management with an option, namely with the right to buy it back within two years," Yevtukhov said on the sidelines of the St. Petersburg International Economic Forum (SPIEF) 2024.

Yevtukhov said that the deal has been submitted for approval to the government commission that oversees foreign investments. "I hope this month," he said in response to the possible timeframe for reviewing the deal, noting that the Finance Ministry is responsible for appointing a commission meeting.

Knauf in April said that the company "has decided to part ways with its business after more than 30 years in Russia in light of the current events." The company's statement noted that the entire business, including raw material extraction, production and sales, would be transferred to local management.