The reduction is accompanied by a waiver from the counter parties of all other warranties and potential claims, thereby finalizing completely the Arkhangelsk sale. The reduction of $382 thousand will negatively affect the results in 2015 in the same amount, as an adjustment of the previously recorded receivable from the asset sale.
Out of the total impact, $377 thousand (being the USD equivalent of RUB 25 million as per the exchange rate on 30 September 2015) will affect 3Q 2015 result, and the remaining $5 thousand will be recognised in 4Q 2015.
The 3rd and last but one payment of $1 million was received in 3Q 2015.
RusForest is a Swedish forestry company operating in Eastern Siberia. The Company controls long-term timber leases and utilizes these resources to produce a wide range of sawnwood products.
