The group said in a statement released today (5 June) that the move follows recent discussions with Augment on its lack of progress in gaining the necessary approvals to complete this transaction. However, Mondi said it remained committed to selling the mill.

Mondi had agreed a deal to sell Syktyvkar to Augment Investments for RUB95bn (£1.27bn at the exchange rate at the time; £942m today) in August 2022, after announcing in May that it would divest its Russian assets due to the Russia's invasion of Ukraine.

Augment is owned by Russian billionaire Viktor Kharitonin, and owns businesses across Russia, Europe, and the UK.

“As per the terms of the sale and purchase agreement, the disposal to Augment will therefore be terminated and will not complete,” Mondi stated today.

“The board remains committed to divest Syktyvkar and will continue to assess all alternative divestment options.”

Syktyvkar is an integrated pulp, packaging paper, and uncoated fine paper mill located in Komi Republic. For the year ended 31 December 2021, Syktyvkar had sales of €821m, EBITDA of €334m, and profit before tax of €271m.

With around 4,500 staff, it is one of the biggest suppliers of uncoated fine paper and containerboard to the domestic Russian market.

The proposed disposal of the group’s three Russian packaging converting operations to Gotek Group, which was announced in December, is not connected with the proposed disposal of Syktyvkar. This transaction remains in progress.

Mondi’s share price was down by nearly 2% at the time of writing at lunchtime today, at 1,269p.