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Siemens has decided to withdraw from the Russian market for the country’s military attack on Ukraine, booking a €600m charge in its second quarter results.
The German multinational conglomerate has begun proceedings to “wind down” its industrial operations as well as all industrial business activities.
It halted all new business and international deliveries to Russia and Belarus after it invaded Ukraine.
International sanctions, along with existing and potential retaliatory actions, hit the firm’s operations in Russia, specifically rail service and maintenance.
The €600m in impairments and other charges booked in the three-month-period ending 31 March 2022 was mainly linked to its Mobility business, which manufactures trains, after sanctions targeted Russia for its Ukraine offensive.
Siemens’ income from continuing operations was €1.21bn in the current quarter, compared with €1.52bn in the same quarter a year ago.
Revenue, however, grew to €17.04bn from €14.66bn during the period, with orders soaring 32% to €21bn on double-digit growth in all industrial businesses.
Siemens president and CEO Roland Busch said: “We condemn the war in Ukraine and have decided to carry out an orderly process to wind down our industrial business activities in Russia.
“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.”