Finance
German drywall maker Knauf fails to sell Russia business
Published by Global Banking and Finance Review
Posted on October 7, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 7, 2025
2 min readLast updated: January 21, 2026
Knauf Group's sale of its Russian business has failed due to a buyer withdrawing. The company will continue operations under local management amid EU sanctions.
FRANKFURT (Reuters) -German family-owned construction materials maker Knauf Group said on Tuesday that attempts to sell its business in Russia, ongoing since April last year, have failed.
The family-owned company with about 15.6 billion euros ($18.20 billion) in sales said in a statement an unnamed prospective buyer of the Russian assets had walked away from talks.
For now, the business would continue to be separately run by local management in Russia, "in full compliance with sanctions", it added.
Knauf, a maker of gypsum boards, drywall systems and insulation slabs, said in April 2024 that it was working on a transaction to withdraw from Russia, where it has businesses including raw material extraction, manufacturing and sales with more than 4,000 employees.
The setback for the company, which echoes similar struggles by European companies with Russian operations, comes as the EU seeks ways to step up its support for Ukraine and its countermeasures against Russia's attacks against its neighbouring country.
This includes work on using frozen Russian sovereign assets in the West to finance Ukraine's defence and reconstruction after Moscow's invasion of Ukraine in 2022.
($1 = 0.8571 euros)
(Reporting by Ludwig BurgerEditing by Madeline Chambers)
Divestment is the process of selling off subsidiary business interests or investments. Companies may divest to focus on core operations or comply with regulatory requirements.
EU sanctions are restrictive measures imposed by the European Union against countries, entities, or individuals to maintain or restore international peace and security, often in response to violations of international law.
Compliance refers to the process of adhering to laws, regulations, and guidelines relevant to business operations. It ensures that companies operate within legal frameworks and ethical standards.
A prospective buyer is an individual or entity that shows interest in purchasing a business or asset but has not yet completed the transaction.
Local management refers to the administration of a business by individuals who are based in the same geographical area as the business operations, often possessing local knowledge and expertise.
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