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German building materials producer Knauf has announced that it has been unable to sell its business in Russia after talks with a potential buyer collapsed.
“Knauf remains committed to its plans to withdraw from Russia. In a very challenging environment, the company is examining further possible options to implement this withdrawal in accordance with the applicable sanctions, while safeguarding the interests of its employees in Russia,” the company said in a statement.
In May 2025, journalists from Der Spiegel and Danwatch reported that Knauf had supplied materials used in the modernization of Russian nuclear facilities, despite the company’s public claims of distancing itself from operations in Russia.
Reporters obtained documents from Russia’s public procurement database containing blueprints for guard towers and other structures around intercontinental ballistic missile silos near the village of Yasny in the Orenburg region.
According to the documents, products from Western companies — including gypsum, adhesives, cement, and insulation materials — were used in the construction of classified military sites in Russia. In the fall of 2022, Russia’s Defense Ministry reportedly ordered 32 tons of Knauf-Rotband gypsum for the 368th regiment in Yasny.
In 2024, German journalists from the public broadcaster ARD examined construction company websites, documentation, photos, and videos. They found that Knauf cement was being used for projects in Russian-occupied Mariupol, where in March 2022 Russian forces infamously targeted a working maternity hospital, along with a drama theater where Ukrainian civilians were seeking shelter.
In response to ARD’s inquiries, Knauf’s management in Bavaria said that it had condemned Russia’s aggression against Ukraine, that it complies fully with EU sanctions, and that it manufactures products solely for independent construction materials distributors in Russia.
Knauf is an international family-owned company that operates more than 320 plants and trading organizations in over 90 countries. In 2024, the group reported sales of €15.6 billion and employed around 43,500 people worldwide.