Two more European firms to exit Russia
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A Swedish and French company are the latest two businesses to announce exiting Russia on Friday.
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A closed Uniqlo shop at a shopping mall in Moscow in April. Credit...Kirill Kudryavtsev/Agence France-Presse — Getty Images
Swedish home appliance giant Electrolux and French industrial gas business Air Liquide announced plans to leave Russia on Friday, becoming the latest foreign firms to do so since the Ukraine war.
After the outbreak of war, Electrolux said that it had "chosen to quit Russia and divest the firm to local management through the sale of its Russian subsidiary."
It said that the Russian military operation and sanctions that followed "have made it impossible for Electrolux to continue its business in the country."
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Although the Swedish business does not have a manufacturing facility in Russia, the nation accounted for 1.6 percent of its global revenue before the war. Electrolux said that a supply of 350 million kroner (around $35 million) will be made in third quarter accounts.
Meanwhile, Air Liquide, which employs approximately 720 people in Russia, has announced plans to exit the country by handing over operations to local managers.
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It revealed that its turnover in Russia represents less than one percent of the group's total, which exceeded 23 billion euros ($23 billion) in 2021.
The company said its activities in the country will no longer be accounted for in the group's financial results from September 1 "as a consequence of the evolution of the geopolitical context".
After the western wave of sanctions hit #Russia, how are the companies that suspended their businesses in Russia doing? And did it "pay" to exit Russia?#UkraineRussiaWar pic.twitter.com/QIXUJRuew3
— Al Mayadeen English (@MayadeenEnglish) April 28, 2022
Since Russia launched its military operation in Ukraine, many big Western corporations have moved out of Russia. More than six months later, other firms have resisted mounting pressure to leave.
Air Liquide confirmed its "intention to withdraw from Russia," adding, "this divestment project to local managers aims to allow an orderly, sustainable and responsible transfer of its activities in Russia, ensuring notably the continuity of oxygen supply to hospitals."
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"As a reminder, the Group has previously announced, in the context of the closing of its accounts on June 30, 2022, an exceptional provision of 404 million euros on the Group's assets in Russia, which has no impact on cash."
The sale price was not disclosed, and the company stated that the transaction is still subject to Russian government approval.
