Siemens joined a number of companies that announced an exit or suspension of their services in Russia due to the invasion of Ukraine.
The company had suspended all new business and international deliveries to Russia and Belarus at the start of the war.
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Siemens says international sanctions, as well as current and potential countermeasures, are impacting the company’s business activities in Russia, particularly rail services and maintenance.
The company will manage the orderly process of ceasing operations in accordance with regulatory requirements and international sanctions.
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“We condemn the war in Ukraine and have decided to implement an orderly process to end our industrial activities in Russia,” said Roland Busch, President and CEO of Siemens AG. “It was not an easy decision, given our duty of care to our employees and our long-standing customer relationships, in a market we have been in for nearly 170 years.”
“We are assessing the impact on our people and will continue to support them to the best of our abilities. At the same time, we are providing humanitarian assistance to our colleagues and the people of Ukraine and we stand with the international community to call for the peace,” Busch added.
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The German company employs around 3,000 people in Russia and had previously decided not to undertake any new projects after the invasion, what Moscow calls a special operation.
Siemens said its net profit had halved to 1.21 billion euros ($1.27 billion) in the three months to the end of March, as the company was hit by 600 million euros of charges and impairments while the Russian situation adversely affected its mobility business.
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Siemens joins companies like Alcoa, Airbnb, Intel, Microsoft and others in ending or suspending service to Russia.