Vičiūnai Group, one of the largest Lithuanian food production groups owned by Kaunas Mayor Visvaldas Matijošaitis, plans to close its business in Russia within three to four months, its CEO Šarūnas Matijošaitis says.
“We can see that not only for us, but for all large businesses that have announced they are pulling out of Russia, the actual withdrawal is taking time and will take several months,” he said in a statement.
Read more: Kaunas mayor-owned Vičiūnai Group continues operations in Russia despite saying otherwise
The group says it has stopped all investments in production in Russia, logistics, trade, and all sponsorship and marketing campaigns since March 7, when it announced it was suspending its activities in Russia because of the invasion of Ukraine.
Moreover, the group is no longer buying any raw materials for its production plant in Kaliningrad region, adding that production is currently using raw materials purchased before the outbreak of the war in Ukraine, just to pay suppliers and financial partners in Europe.
“Raw materials ordered before the start of Russia’s aggressive war in Ukraine, which amounted to nearly 200 sea containers, have been turned back and have not been imported to Russia,” Matijošaitis said.
He says active negotiations with potential buyers of the group’s businesses in Russia are underway.
Vičiūnai products produced in Kaliningrad are sold in Russia and other Eastern European markets.
The group also owns a company in Ukraine, with branches in Kyiv, Kharkiv, Dnepropetrovsk, Odessa, and Ivano Frankivsk.
It was reported on March 14 that an artillery shelling resulted in a fire and complete destruction of the group’s warehouse located in Brovary, about 15 km north-east of Kyiv.
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