SHARE
COPY LINK

ABB

Swedish engineering giant ABB to quit Russia over Ukraine

Swedish-Swiss engineering giant ABB said on Thursday it will quit Russia as a result of the war in Ukraine and the related international sanctions against Moscow.

Swedish engineering giant ABB to quit Russia over Ukraine
A worker at Hitachi ABB Powergrids in Ludvika. Photo: Fredrik Sandberg / TT

Russia accounts for only one or two percent of ABB’s overall annual turnover and the decision to pull out will have an estimated financial impact in the second quarter of around $57 million, the group calculated.

“ABB has decided to exit the Russian market due to the ongoing war in Ukraine and impact of related international sanctions,” the group said in a statement.

Russia accounts for only one or two percent of ABB’s overall annual sales and the decision to pull out will have an estimated financial impact in the second quarter of around $57 million, the group calculated.

READ ALSO: 

A large number of major western companies have pulled out of Russia since Moscow invaded its pro-Western neighbour on February 24.

“When the war broke out, ABB stopped taking new orders in Russia,” the group said.

At the same time, it said it continued to fulfill “a small number of existing contractual obligations with local customers, in compliance with applicable sanctions.”

Most of ABB’s dedicated Russian workforce has been on leave since March “and the company will do its best to support them as it realigns its operations in a controlled manner,” it said.

ABB has about 750 people in Russia and two production sites in the country located in the Moscow region and Lipetsk, as well as several service centres.

Separately, the group said that its net profit fell by 50 percent to $379 million in the second quarter, largely as a result of one-off charges, but also the cost of withdrawing from Russia.

Sales, on the other hand, grew by six percent to $7.2 billion in the period from April to June, ABB said.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

SAS

SAS strike affected 380,000 passengers in July

More than 3,700 flights where cancelled and 380,000 passengers where affected by the 15-day strike which hit Scandinavia's SAS airline last month, the company has revealed.

SAS strike affected 380,000 passengers in July

“We sincerely apologize to our customers who were affected by the July strike,” Anko van der Werff, the company’s chief executive, said in a press release. “We are happy operations returned to normality again allowing us to start regaining our customers’ trust.”

According to the release, 1.3 million passengers travelled with the airline in July, which was still a 23 percent increase on the same month last year, when Covid-19 restrictions were still reducing tourism levels.

“In comparison with last month, the total number of passengers decreased with 32 percent and capacity was decreased by 23 percent, which was a result from the 15-day pilot strike,” the release read. 

Pilot unions in Sweden, Denmark and Norway, went on strike for 15 days last month over pay, conditions, and the company’s refusal to rehire pilots laid off during the Covid-19 pandemic on the same terms as before. 

The strike, which cost the airline between €9m and €12m a day, was ended on July 19th, after which it took several days to get flights back to normal

Van der Werff said company said it would now continue putting in place its restructuring plan, SAS FORWARD, and push ahead with restructuring in the US, where the company has filed for Chapter 11. 

He said these would both “accelerate the transformation process that will lead to a financially stable airline, that will be able to deliver the service our customers are expecting”. 

SHOW COMMENTS