icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm
12 May, 2022 08:42

Siemens leaving Russia

The German industrial major has begun procedures to stop all manufacturing and business in the country
Siemens leaving Russia

Munich-based industrial giant Siemens is leaving the Russian market in response to Moscow’s military operation in Ukraine, the company said in a statement on Thursday.

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,” the statement reads.

In early March, the company announced the cessation of deliveries to Russia and Belarus and the suspension of all new business projects due to the conflict in Ukraine and ensuing Western sanctions against Moscow. The company continued, however, to carry out its service and maintenance commitments, largely relating to the company’s train-making unit, Siemens Mobility, which has an agreement with Russian Railways to build and service high-speed Sapsan trains.

The company now says that the “comprehensive international sanctions, as well as current and potential countermeasures, impact the company’s business activities in Russia,” and therefore Siemens decided to wrap up activities in the country altogether.

Russian Railways reported back in March that Siemens had notified the company of the suspension of the contract for the purchase of Sapsan trains.

Siemens has been operating in Russia since 1852, when the company was engaged in laying telegraph lines. Russia accounts for roughly 1% of Siemens’ global sales.

The German industrial giant is not the first international company to leave Russia in connection with Ukraine. Since late February, many firms operating in various spheres have succumbed to political pressure and suspended their work in the country, including Nokia, Ericsson, General Electric, Shell, Total, as well as a number of tech giants, banks, and food and clothing producers.

For more stories on economy & finance visit RT's business section

Podcasts
0:00
19:57
0:00
22:49