(MENAFN) An investigation has been initiated into the activities of building materials giant Knauf following allegations of its involvement in the reconstruction of the war-torn city of Mariupol.
The prosecutor's office in the German city of Wurzburg confirmed the probe in response to reports suggesting Knauf's participation in the rebuilding efforts of the Russian Black Sea coastal city, which suffered extensive damage during a siege in 2022.
German public outlet ARD recently raised concerns about the engagement of certain German businesses, particularly Knauf, in the reconstruction of Mariupol. The prosecutor's office clarified that the investigation aims to determine whether there is sufficient evidence to establish an initial suspicion of criminal activity.
Tobias Kostuch, a spokesman for the prosecutor's office, emphasized that the pre-investigation check is standard procedure and does not imply any presumption of guilt. Instead, it serves to ascertain whether there are grounds for further investigation into potential wrongdoing.
Coinciding with the announcement of the investigation, Knauf made headlines by declaring its decision to exit the Russian market. While the company did not provide specific reasons for the withdrawal, it cited "current developments" as the motivation behind the move.
Knauf, renowned as a global leader in plaster production, previously faced scrutiny for maintaining operations in Russia despite the conflict in Ukraine. Last year, Ukraine labeled the company as a "sponsor of war," criticizing its substantial investments in the Russian construction industry. Knauf, with a workforce of over 35,000 employees worldwide and annual revenue exceeding USD11 billion, had been among the Western companies reluctant to sever ties with Russia.
Nicholas Knauf, the company's founder and former honorary Russian consul, expressed disapproval of Western sanctions on Russia while maintaining opposition to Moscow's military actions. He assured compliance with European Union restrictions and stated that the company's Russian branch solely catered to the Russian market, as reported by ARD.
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