Latest update: 10 February 2023. Kiilto has strongly condemned the Russian government’s military aggression against Ukraine. With the approval of the Russian authorities, Kiilto has now been able to sell all its Russian subsidiaries. After a transition period, Kiilto brands will no longer be sold in the Russian market.
Kiilto began to look for a legally appropriate way to exit the Russian market in March 2022. In July 2022, Kiilto and Bergauf Group reached an agreement on the acquisition of several construction and industrial adhesive subsidiaries. With the recently concluded transaction, AO Kiilto-Klei, OOO Kiilto Family and OOO Kiilto-Klei Ramenskoe were transferred to Bergauf Group. Bergauf Group is one of Russia’s most prominent construction chemical manufacturers.
In September 2022, Kiilto and O3 Chemicals signed an agreement on the sale of OOO KiiltoClean. O3 Chemicals is an industrial coatings manufacturer that has owned a professional cleaning product and disinfectant plant in Rostov-on-Don since 2020.
With these transactions completed, Kiilto’s entire Russian operations, which encompassed three production plants and approximately 200 employees, have now been transferred to new owners. The transition will be carried out in accordance with the applicable legislation and sanctions and taking into account staff safety.
The goal of selling the Russian subsidiaries was not financial gain, but rather finding a legal way to exit the Russian market. In 2021, Kiilto’s Russian operations accounted for about 10% of the company’s turnover. Kiilto’s operations in Belarus ceased in spring 2022 and the liquidation of the company will be finalized during February 2023.
Our support to Ukraine
In 2022 we donated 50 000 euros to the Finn Church Aid (FCA), Finland’s largest international aid organisation, to help the victims of this terrible situation in the crisis area. In addition, together with Insta we have donated 10 000 euros to crisis help via international family business network.
We also shipped donations to the crisis area from Finland, Denmark, Sweden and Norway iin 2022. Together with Udvikling Assens and other local companies on West Funen, Denmark, we shipped a lorry with a donation of 14.5 tons of goods to the Polish-Ukranian border. The shipment contained e.g., soap, hand creme, hand sanitizer, diapers, infant formula, clothes, beverages, mattresses and pillows. In Finland, via a shipment organized by Pamark Group, we have donated healthcare hygiene and personal hygiene goods to help in the crisis area. From Sweden we have donated hand disinfectants to health care institutions in Ukraine through UkrainaTransporten, in collaboration with Swedish Medtech and Labtech. From Norway we have donated Antibac hand disinfectants to Ukraine through EagleMission.
Please direct your additional questions about the effects of the situation in Ukraine to your local Kiilto contacts.