The multinational, which supplies industrial gases and services to a range of industries, cited "the geopolitical context" for its decision to pull out of Russia in a statement released on Friday. "This divestment project to local managers aims to allow an orderly, sustainable and responsible transfer of its activities in Russia," Air Liquide said.
Counsel details for the deal were not immediately available on Friday.
Air Liquide's Russian operations employed about 720 people, but the arm of the business accounted for less than 1% of the company's turnover. The process to end Air Liquide's involvement in the country started on Thursday and is subject to Russian regulatory approval.
Shares in Air Liquide, which is listed on the Euronext Paris stock exchange, were trading at €122.38 at lunchtime on Friday, down 0.92% from Thursday's closing price of €123.56.
Air Liquide announced half-yearly profits for 2022 of €1.3 billion in July, an increase of 5.3% compared with the corresponding period of 2021. The company noted that this was achieved despite taking a hit on its Russian assets.
The U.K., U.S. and the European Union have imposed aggressive sanctions on Vladimir Putin's regime after his country invaded Ukraine in February. The sanctions have focused mainly on the gas and oil industries, which play a central role in propping up the Russian economy.
Although the U.S. does not import any gas from Russia, the EU relied on the country for 45% of its natural gas needs in 2021, according to the International Energy Agency, which provides policy recommendations and analysis on the global energy sector.
And sanctions extend beyond attempts by Western countries to wean themselves off Russian energy resources.
Gold mining company Petropavlovsk, which is based in London, agreed in August to sell its operations in Russia to rival UMMC-Invest for $600 million.
And the U.S. Department of Commerce announced this week that individuals looking to export, reexport and transfer U.S.-made aircraft to Russia must obtain a license to do so.
--Additional reporting by Alex Lawson, Najiyya Budaly and Alyssa Aquino. Editing by Joe Millis.
Correction: An earlier version of this story wrongly stated that Air Liquide had disclosed the price of the transaction. That has been corrected.
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