Munich-based industrial giant Siemens is leaving the Russian market in response to Moscow’s military operation in Ukraine, the company said in a statement on Thursday.
“Siemens will exit the Russian market as a result of the Ukraine war. The company has started proceedings to wind down its industrial operations and all industrial business activities,” the statement reads.
In early March, the company announced the cessation of deliveries to Russia and Belarus and the suspension of all new business projects due to the conflict in Ukraine and ensuing Western sanctions against Moscow.
The company continued, however, to carry out its service and maintenance commitments, largely relating to the company’s train-making unit, Siemens Mobility; which has an agreement with Russian Railways to build and service high-speed Sapsan trains.
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The company now says that the “comprehensive international sanctions, as well as current and potential countermeasures; impact the company’s business activities in Russia,” and therefore Siemens decided to wrap up activities in the country altogether.
Russian Railways reported back in March; that Siemens had notified the company of the suspension of the contract for the purchase of Sapsan trains.
Siemens has been operating in Russia since 1852; when the company was engaged in laying telegraph lines.
Russia accounts for roughly 1% of Siemens’ global sales.
The German industrial giant is not the first international company to leave Russia in connection with Ukraine.
Since late February, many firms operating in various spheres have succumbed to political pressure and suspended their work in the country, including Nokia, Ericsson, General Electric, Shell, Total, as well as a number of tech giants, banks, and food and clothing producers.