Tetra Pak’s decision to depart Russia after 62 years will hurt the packaging sector

• Tetra Pak, a privately held packaging manufacturer, announced on Tuesday that it would divest its operations in Russia after spending 62 years there.
• It stated that local management will run the business under a new name as an independent organisation.
• After Moscow dispatched tens of thousands of troops into Ukraine on February 24 in what it calls a “special military operation,” prompting worldwide sanctions and criticism, scores of Western corporations have left Russia or declared their intention to do so.

Tetra Pak, a privately held packaging manufacturer, announced on Tuesday that it would divest its operations in Russia after spending 62 years there.

It stated that local management will run the business under a new name as an independent organisation.

After Moscow dispatched tens of thousands of troops into Ukraine on February 24 in what it calls a “special military operation,” prompting worldwide sanctions and criticism, scores of Western corporations have left Russia or declared their intention to do so.

In an effort to maintain continuity for customers and lessen the impact on staff, Tetra Pak froze all new investments and projects in Russia in March. The company now plans to continue this with the new business.

Tetra Pak said in a statement that the business was forced to leave Russia as a result of the cumulative effects of the export restrictions to that nation, which had caused an unsustainable supply chain.

Following this change of ownership, the new business will function independently under a different name and not be connected to Tetra Pak.

The effects of the sanctions are having a negative influence on Russia’s packaging industry. Juice cartons, which are typically printed in colour, are now mostly printed in white due to a supply constraint, according to video taken by Reuters.

Tetra Pak claimed this was an example of how supply chains had been disrupted, as they had also created juice cartons without their customary colours.

At the St. Petersburg International Economic Forum last month, a journalist handed a partially blank juice carton to President Vladimir Putin, who responded that Russia valued sovereignty and independence more than packaging issues.