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Siemens withdraws completely from Russia

2022-05-12T06:06:38.834Z

It is the end of a 170-year business relationship: Siemens ceases all business in Russia. The problems there as a result of the Ukraine war screwed up the group's second quarter as well.



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Siemens headquarters in Munich: Connections to Russia are cut

Photo: Thomas Hiermayer/DeFodi.de / imago images/DeFodi

The technology group Siemens is withdrawing from the Russian market as a result of the war in Ukraine.

"We condemn the war in Ukraine and have decided to end our industrial business activities in Russia in an orderly process," said Siemens CEO Roland Busch.

After Russia's attack on Ukraine, Siemens had already stopped new business and international deliveries to the country and Belarus.

Siemens generates around one percent of group sales in Russia and Belarus.

Business relations between Siemens and Russia have a 170-year tradition.

The business units would manage their activities in an orderly process in accordance with the regulatory requirements and international sanctions, Siemens has now announced on the complete withdrawal.

Accordingly, the group has about 3000 employees in Russia.

Siemens has major locations in Moscow and Saint Petersburg.

There are also various sales offices.

Siemens' business in Russia also spoiled its earnings in the second quarter.

The company recorded a charge, among other things, from depreciation of 600 million euros.

They mainly relate to the train business.

In addition, the company considers further charges in the mid three-digit million euro range to be possible - the time when these will be booked is still open.

Overall, Siemens made a profit of 1.2 billion euros in the second quarter.

That is only half as much as in the same period last year, but the group confirmed its forecast for the current year.

The prerequisite is that the bottlenecks in the supply chain do not worsen and that the pandemic does not bring any new challenges.

Siemens rated high incoming orders as positive.

They rose by almost a third to almost 21 billion euros.

Sales increased by 16 percent to 17 billion euros.

"In an extremely difficult environment, our business remains strong," said Siemens CEO Roland Busch.

»The increased order intake and sales once again reflect the trust our customers have in us.«

In addition to the Ukraine war, the group is feeling the consequences of the corona pandemic.

It is about avoiding major interruptions, although there are increased risks with electronic components, raw materials and logistics, the group said.

In the automation technology division, however, there were longer delivery times.

mmq/Reuters/dpa

Source: spiegel

All business articles on 2022-05-12

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