After the outbreak of the war, Siemens stopped all new business with and international deliveries to Russia and Belarus. The comprehensive international sanctions and the current and potential countermeasures are affecting the company’s business activities in Russia – especially its railway service and maintenance business. For companies that are mainly active in B2B business, the decision to completely exit a region is more difficult to make than for companies that sell consumer goods. The reason: contracts for the maintenance of industrial plants and trains are concluded for many years, sometimes decades.
The technology group had already announced in early March that it no longer planned to do new business with Russia. But the long-term service contracts were to continue to be fulfilled for the time being. Now, however, it said it planned to discontinue the business – including the service and maintenance business. “This decision was not easy for us, because we have a duty of care towards our employees and long-standing customer relationships in this market,” said Roland Busch, CEO of Siemens AG.
“We condemn the war in Ukraine and have decided to end our industrial business activities in Russia in an orderly process,” said Busch. “This decision was not easy for us, as we have a duty of care to our employees and long-standing customer relationships in a market where we have been operating for around 170 years. We are currently assessing the impact on our workforce and will continue to support them to the best of our ability. At the same time, we are providing humanitarian assistance to our colleagues in Ukraine, as well as to the Ukrainian people, and we join the international community in calling for peace.”
Siemens businesses will manage the wind-down of their operations in an orderly process – in line with regulatory requirements and international sanctions. Siemens has been operating in Russia since 1852 and employs a low four-digit number of people there.
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.