Siemens to completely withdraw from Russia

German industrial giant Siemens on Thursday,  announced it would completely withdraw from Russia due to its war in Ukraine.

“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 company said in a statement.

Siemens had already put all new business in Russia and international deliveries to the country on hold since the beginning of the conflict.

The decision would put pressure on Siemens’ earnings, as it released its second-quarter figures.

Siemens announced a profit of 1.2 billion euros (1 billion dollars), half as much as in the same period last year.

The group, however, also confirmed its outlook for the rest of the year.

The fall in profits was not only connected to the consequences of leaving Russia, where Siemens has previously generated around 1 per cent of its sales and had around 3,000 employees.

The comparative result from the same quarter last year was also pushed upwards by factors including the sale of gearbox maker Flender, which brought in around 900 million euros before tax.

“In an extremely challenging environment, our business continues to be strong,’’ said chief executive Roland Busch, who took up the reins during the second quarter.

“Siemens continued its growth path and achieved strong operational performance.

“The rise in orders and revenue again reflects the trust our customers place in us to support digitalisation, automation and sustainability,’’ he added.

Revenues rose 16 per cent year-over-year to 17 billion euros and incoming orders increased by 32 per cent to almost 21 billion euros.

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