UNITED KINGDOM (News release) -- The Russian authorities have not approved the sale of Mondi's Syktyvkar mill in the Komi Republic, Russia. Possible reason is too high transaction price.

The Syktyvkar assets were planned to be sold to Augment Investments Limited for RUB 95 billion (Euro 1.5 billion).

Augment is an investment vehicle majority owned by Viktor Kharitonin, comprising assets in the pharmaceutical and other sectors across Russia, Europe and the United Kingdom.

Syktyvkar is a wholly owned integrated pulp, packaging paper and uncoated fine paper mill located in Syktyvkar, Komi Republic, Russia. The Business employs approximately 4,500 people and it is a leading provider of uncoated fine paper and containerboard to the domestic Russian market.