The company’s Nebolchi and Impilahti sawmills will be divested to local management. The deal also includes Stora Enso’s Russian forest operation, which through its harvesting supplies wood to the sawmills.

In a statement released today (25 April), the business said: “Stora Enso’s assessment is that due to the uncertainties in the Russian market, local ownership and operation can provide a more sustainable long-term solution for these business operations and the employees working there.”

Pending necessary approvals, the transaction is expected to be concluded within Q2 2022 and will have no material impact on Stora Enso’s annual sales and operational EBIT. Due to decreased business prospects on these businesses, an impairment loss of €70m (£59m) has been recorded in the first quarter results.

The additional loss on the transaction under IFRS will be approximately €60m, consisting mainly of currency translation adjustments to be recorded at the closing date. The expenses are considered as items affecting comparability.

The sawmill sites, which are located in Novgorod and Karelia, employ around 330 people and have a total annual capacity of 350,000 cubic metres of sawn timber, including 55,000 cubic metres of processed timber and 65,000 tonnes of pellets.

Stora Enso’s Russian forest operations employ around 170 people and manage long-term harvesting rights for around 370,000 hectares.

Stora Enso said last month that it would stop all production and sales in Russia until further notice due to the invasion in Ukraine. The group said it is “in a process to find a sustainable solution for the future of its three packaging plants in Russia”.