THE WHAT? Essity has agreed the sale of its operations in Russia. The transaction has been approved by the Russian authorities and is expected to complete before the current quarter’s close.

THE DETAILS The identity of the buyer and terms of the deal were not disclosed. Essity said in a statement that an impairment of approximately SEK1.7 billion was carried out of the company’s assets in Russia in 2022.

THE WHY? Essity revealed that the total earnings impact of the transaction will be reported upon closing but it is not expected to have a material financial impact. Essity’s net sales in Russia amounted to approximately 2 percent of its total net sales. The Swedish health and hygiene announced its intention to exit the market in April 2022 following Russia’s invasion of Ukraine.