Ukrainian Invasion: Siemens Announces Plan To Quit Operations In Russia After 170 Years

Ukrainian Invasion: Siemens Announces Plan To Quit Operations In Russia After 170 Years

After 170 years of operation, Siemens – a German industrial giant – has announced plans to withdraw all its businesses from Russia.
Siemens’s decision is sequel to the ongoing Russian-Ukrain war. The company has already lost €600million following the European Union’s sanctions on Russia.

The President and Chief Executive Officer (CEO) of the company, Roland Busch, announced the plans in a statement.
The company announced its decision to withdraw from Russia alongside second quarter results, as the profit fell during the second quarter and the international sanctions on Russia have cost it €600million.
Evening Standard quoted the statement as stating that “Siemens will exit the Russian market as a result of the Ukraine war. The company has started proceedings to wind down its industrial operations and all industrial business activities.”
Reports showed that Siemens employed 3,000 people in Russia with its business activities spanning across energy, communications, technology and travel. It also worked on high-speed trains that currently serve Moscow–St. Petersburg route.
Busch further stated that Siemens “Condemns the war in Ukraine and have decided to carry out an orderly process to wind down our industrial business activities in Russia.”
“This was not an easy decision, given our duty of care for our employees and long-standing customer relationships, in a market where we have been active for almost 170 years,” he added.
Siemens has put all its new business and international deliveries to Russia and Belarus on hold since the Ukraine war started. This has adversely affected the company in the country.
Similarly, the international sanctions have impacted its Russian operations, particularly through rail deliveries and maintenance negatively.
As it plans to withdraw from Russia, Siemens said it would manage the orderly process to wind down its activities in line with regulatory requirements and international sanctions.
“We are evaluating the impact on our people and we will continue to support them to the best of our abilities. At the same time, we provide humanitarian assistance to our colleagues and the people of Ukraine and stand with the international community in calling for peace,” the CEO said.
The company said it has already started negotiating its way out of a contract with Russian energy supplier Gazprom.
Siemens announced in April that it supported “the severe and broad sanctions applied by western governments” on Russia.

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Source: Ukrainian Invasion: Siemens Announces Plan To Quit Operations In Russia After 170 Years