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.
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:
- Swedish clothes giant H&M to wind down Russian business
- Ikea to ‘scale down’ operations in Russia and Belarus over Ukraine
- Spotify subscriber growth hampered by Russia exit
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.
Comments
See Also
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:
- Swedish clothes giant H&M to wind down Russian business
- Ikea to ‘scale down’ operations in Russia and Belarus over Ukraine
- Spotify subscriber growth hampered by Russia exit
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.
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.