• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 22 hours What China is Learning from Russia's War in Ukraine and its Consequences
  • 1 hour Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 4 days Revisiting: "The U.S. Grid Isn’t Ready For A Major Shift To Renewables" from March 2021 by Irina Slav at OILPRICE
  • 3 days Failure To Implement Russian Oil Ban Could Send Oil Crashing To $65
  • 8 hours Advancing Fundamental Drilling Science - Geothermal drilling successes offer potential gain for petroleum industry
  • 7 hours "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.

Siemens Is Leaving Russia After 170 Years

Siemens is set to face a €600m (£512m) hit in the second quarter after announcing its full exit from the Russian market after 170 years.

Following the invasion of Ukraine in late February, Siemens Chief Executive Roland Busch said the conflict was a “turning point in history”, and has decided to pull all services from the region.

“We, as a company, have clearly and strongly condemned this war,” Busch told reporters.

“We’re all moved by the war as human beings. And financial figures must take a back seat in the face of the tragedy. Nevertheless, like many other companies, we’re feeling the impact on our business.”

The company said in a statement: “Siemens will exit the Russian market due to the Ukraine war. The company has started proceedings to wind down its industrial operations and all industrial business activities.”

The decision has already started to chip at profits. Not only has Siemens’ net income halved to 1.21 billion euros in its quarterly results, missing analysts’ forecasts of 1.73 billion, but sanctions in Russia have also already cost the company €600m.

These hefty losses were driven by impairment and other charges recorded in the Munich firm’s train-making mobility business as a result of sanctions on Russia.

Whilst the Russian market contributes about one percent of Siemens’ annual revenue,  Busch warned that further costs would be incurred, including legal entities, revaluation of financial assets and restructuring costs. The German firm employs around 3,000 people in Russia.

“From today’s perspective, we foresee further potential risks for net income in the low- to mid-triple-digit million range, although we can’t define an exact timeframe,” he said.

Shares fell nearly five percent this morning.

By City AM

More Top Reads from Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News