Knauf, a construction materials manufacturer, speaks out against allegations in Russia.
German construction materials manufacturer Knauf defends itself against allegations of supporting Russia's war effort in Ukraine following an investigation by German news outlet "Spiegel." Knauf, which operates in Russia through several subsidiaries, insists that it adheres to applicable sanctions and has no direct ties to military or strategic projects.
The company denies accusations that it knowingly supplies materials for nuclear weapons bases expansion in Russia. According to Knauf, its business in Russia has been under scrutiny since Moscow's invasion of Ukraine. The company announced its intention to withdraw from Russia more than a year ago but has yet to complete the process due to complex regulatory requirements and ongoing discussions with responsible authorities.
Despite claims of operating independently, Knauf subsidiaries in Russia sell their products almost exclusively to independent building materials dealers, leaving no control over their end use. Knauf maintains that its materials are neither intended nor suitable for weapon system operation or maintenance. The company has no contractual relationships with the Russian Ministry of Defense or its subordinate agencies.
Investigations have shown that Western companies, including Knauf, may continue to have indirect supply connections to Russia through local companies and their subsidiaries. Knauf insists that it trades only with independent dealers and is unable to monitor the final destination of its products.
Knauf's planned withdrawal from Russia includes selling its raw material extraction, production, and distribution businesses in the country. More than 4,000 employees are currently employed by the company in Russia, and the transaction is subject to approval from Russian authorities.
The Knauf Group, a multinational corporation generating approximately 15.4 billion euros in revenue in 2022, operates in approximately 90 countries with hundreds of plants and around 40,000 employees worldwide. Knauf is also active in Ukraine, where it operates a plant in Kyiv with approximately 420 employees and is constructing two additional plants in western Ukraine.
In the midst of intensifying Western sanctions against Russia, multinational companies face challenges ensuring compliance while managing complex supply chains and preserving corporate responsibility standards in conflict-affected markets.
- The Knauf Group, with operations in approximately 90 countries and employment of around 40,000 people worldwide, asserted that it has no direct ties to military or strategic projects in Russia, as per its community policy.
- Despite investigations revealing potential indirect supply connections, Knauf affirmed that it sells its products in Russia almost exclusively to independent building materials dealers, thereby having no control over their final use in manufacturing, employment, or real-estate industry.
- As the multinational corporation continues to navigate complex regulatory requirements and ongoing discussions with Russian authorities to complete its withdrawal from Russia, it is simultaneously investing in its Ukraine operations by expanding operations at its Kyiv plant and constructing two additional plants in western Ukraine.
