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Siemens pulls out of Russia citing sanctions

The war in Ukraine has prompted Siemens, one of the world’s largest manufacturing companies, to pull out from Russia, according to the company’s statement.

The German multinational Siemens will withdraw from Russia due to the war in Ukraine, the company said on Wednesday, citing the additional costs and losses it incurred in the part of its business responsible for producing rolling stock as the reason for the decision.

We condemn the war in Ukraine and have decided to carry out an orderly process to wind down our industrial business activities in Russia,” President and CEO of Siemens AG Roland Busch said, adding that “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.”

“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,” Mr Busch added.

What pushed Siemens to make the decision were, as the company said itself according to Fox Business, sanctions impacting the company’s business activities in Russia, in particular rail service and maintenance. The company also cited current and potential countermeasures that could further deteriorate its activities in Russia.

Employing some 3,000 people in Russia, the German company said its net income had halved to EUR 1.21 billion in the three months to the end of March as the company was hit by EUR 600 million in charges and impairments. This resulted from the situation in sanctions-laden Russia taking its toll on the mobility business.

Initially, when Moscow commenced its invasion of Ukraine, Siemens had put all new business in and international deliveries to Russia and Belarus on hold.

Now Siemens has joined a host of businesses that have announced an exit or suspension of their services in Russia due to the country’s aggressive policy towards Ukraine. Some of the major businesses which ended or suspended their services in Russia are Alcoa, Airbnb, Intel, Microsoft and others.

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