Knauf withdraws from Russia

The German building materials manufacturer Knauf is withdrawing from Russia. In light of current developments, the group has "decided to part with its business in Russia after more than 30 years there," according to a press statement. The company intends to transfer the entire business in Russia, including raw material extraction, production and sales, to local management "in order to preserve the jobs of more than 4 000 employees in the future," the press release continues. The planned transaction is subject to approval by the relevant authorities in Russia.

The company's announcement confirms a report by the online service Business Insider. Knauf has been criticised following a report by the German public television channel ARD. The report shows how Knauf products are being used in the reconstruction of the previously destroyed Ukrainian city of Mariupol, which is being driven forward by Russia. The company was thereupon accused of violating EU sanctions against Russia.

However, the group rejects the allegations and states that there is no connection to the planned end of the Russian business. “Knauf always complies with the law and sanctions. Since February 2022, Knauf has also no longer been supplying goods from the EU to Russia,” the company clarifies, emphasising that it produces building materials and is not involved in construction projects as an executing builder or investor. In addition, Knauf points out that according to Business Insider, the public prosecutor's office, which is dealing with the possible violation of sanctions, clarifies: "There is currently no initial suspicion against Knauf employees."