Statement on latest media reports regarding Knauf in Russia

We reject the accusations made against Knauf by the magazine "Der Spiegel" in its report of May 28.

The management of the Knauf Group and the Knauf family condemn Russia's war of aggression against Ukraine and firmly reject any accusations of directly or indirectly supporting this war or the armament of the Russian military. In particular, we reject the accusation that Knauf would knowingly support the construction and operation of nuclear weapons bases through direct product deliveries.

Knauf produces building materials in many countries around the world. These building materials serve a variety of civilian purposes and are neither intended nor suitable for making or keeping weapons systems operational.

Knauf has no contractual relationships with the Russian Ministry of Defense or any authorities subordinate to it. Accordingly, Knauf neither sells nor supplies products to such entities.

Knauf's Russian subsidiaries sell products manufactured in Russia almost exclusively to independent building materials dealers. The Russian subsidiaries have no possibility of instructing these dealers as to which customers they may maintain business relations with.

We strongly reject the accusation that Knauf is actively helping the Russian state circumvent sanctions. Since the beginning of the war, Knauf has strictly adhered to all sanctions. We comply fully with all applicable laws, regulations, and sanctions at all times.

Financial transactions between Russia and Germany, or third countries, are also subject to strict sanctions, which we, of course, follow without exception. Since announcing our withdrawal, the Knauf Group has not received any profits from its business operations in Russia.

In line with the applicable sanctions, which Knauf strictly observes, no goods have been exported from Russia to the EU or imported from the EU to Russia for years. As a result, the Russian subsidiaries must independently produce all products for the local market.

We are continuing to work diligently on the withdrawal from Russia announced in April 2024. Our negotiations have already progressed significantly, but it is still too early to confirm their completion. The process is highly complex from a regulatory standpoint, involving multiple competent authorities and requiring numerous approvals across various jurisdictions. As a result, the ongoing discussions remain confidential, and we cannot share further details yet.

Knauf is producing and investing heavily in Ukraine to support the war-torn country in maintaining its infrastructure. Knauf already employs around 420 people at its existing plant in Kiev. In the west of the country (city of Borshchiv/Ternopil region), Knauf has begun construction of two new plants, a gypsum plaster plant and a gypsum board plant. The gypsum plaster plant is scheduled to go into operation this year, while the gypsum board plant is scheduled to open in 2027. We are investing a total of 150 million euros in the region, creating numerous new jobs.