OREANDA-NEWS. July 31, 2014. RusForest AB sells its subsidiary, Ystad Pellets AB, which owns a non-core wood pellet mill that has been idle for several years in Ystad, Sweden, as the company said in the press release received by Lesprom Network.

RusForest expects to receive a total net amount of USD 0.6 million in cash from the transaction. The Company has already received USD 0.2 million of this amount from the buyer. Payment of the remaining amount is contingent upon the buyer being able to renew key contracts with local port authorities and is expected in the next few weeks.

The sale of Ystad Pellets AB is expected to result in an impairment of approximately USD 0.9 million in the Q2 2014 financials to be released on August 29, 2014.

RusForest is a Swedish forestry company operating in Eastern Siberia and the Arkhangelsk region of Russia. The Company controls long-term timber leases and utilizes these resources to produce a wide range of sawnwood products and wood pellets.