Siemens withdraws from Russia
Siemens AG’s Russian subsidiary Systems LLC (formerly Siemens LLC) is expected to initiate a voluntary liquidation procedure in February 2024.
Source: Interfax Russia, citing a Systems LLC 2023 report
Details: Interfax cited that the reason was the firm’s inability to continue its usual activities related to the import of goods to the Russian Federation.
In 2023, Systems LLC’s revenue totaled 278.8 million roubles (over US$3 million), compared to 6.32 billion roubles (US$66 million) in 2022, a net loss of 279.6 million roubles.
"The company has almost no assets left on its balance sheet, except for accounts receivable and cash on accounts (in the amount of 843.6 million roubles (approx. US$9 million – ed.). The company recalled that in connection with the EU sanctions against Russia, Siemens AG suspended new orders and deliveries to the country in March 2022," Interfax reported.
Siemens started working in Russia in the middle of the 19th century, and continued to operate there even during the Soviet times.
As of late 2023, 18 structures associated with Siemens AG were still registered in Russia. Some of them have since been liquidated or are in the process of liquidation, while others have changed owners.
Siemens AG works in industry automation and digitalisation, smart infrastructure, transport, and distributed energy systems.
Background:
- In May 2022, the German concern Siemens announced that it would leave the Russian market in light of the war in Ukraine and began the process of wrapping up all industrial activities.
- Prior to that, Siemens informed Russian Railways that it had suspended the contract for the purchase of Sapsan high-speed electric trains.
- Siemens was earlier caught up in a scandal after it emerged that it had supplied gas turbines to Russia that were later installed in occupied Crimea, which is subject to EU sanctions. Siemens initially denied that it supplied the turbines, but later admitted that it had evidence that the gas turbines had been illegally transported to Crimea.
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