Siemens Ending 170-Year Presence in Russia

Siemens announces its full exit from Russia after 170 years following Moscow’s invasion of Ukraine, which is described by the company CEO Busch as a “turning point in history”. The German industrial giant is set to face a €600m hit in the second quarter after the announcement.

Busch said they have clearly and strongly condemned the war as a company. He added that financial figures are not important “in the face of tragedy” although he said the company would feel the impact.

The company statement said it would exit the Russian market due to the Ukraine war. The company has started proceedings to wind down its industrial operations and all industrial business activities.

Siemens’ decision has already affected profits. The company’s net income halved to €1.21 billion in its quarterly results, missing analysts’ forecasts of 1.73 billion, but sanctions in Russia have also already cost the company €600m.

These hefty losses were driven by impairment and other charges recorded in the company’s train-making mobility business as a result of sanctions on Russia.

Busch said further costs could be incurred including legal entities, revaluation of financial assets and restructuring costs although the Russian market contributes only about one percent of Siemens’ annual revenue. It employs around 3,000 people in Russia.

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