Last year, Continental AG announced its intention to wind down its Russian operations. Initial reports in the German press suggested the company planned a responsible exit, but it continued to supply certain products from Russia during the transition, which drew criticism from observers. The final course of action has now been confirmed: Continental will exit the Russian market in a verifiable and orderly manner.
CEO Nicolai Setzer noted that 2022 brought a tough set of headwinds for the company. Soaring costs for raw materials, energy, and logistics weighed on results, and the year ended with a substantial loss of €850 million. A portion of this impact stemmed from sanctions-related write-offs, with about €87 million attributed to impaired assets in Russia. The message from leadership stresses the strategic shift away from Russia, aligned with broader goals to reallocate resources and stabilize the group’s global footprint.
The stated plan involves selling the Russian activities, including Continental’s Kaluga manufacturing site. Management emphasized that the sale process is well advanced, signaling a concrete and near-term transition rather than a long, protracted phase. The Kaluga plant is referenced as a key asset in this portfolio, illustrating Continental’s effort to unwind operations responsibly while preserving value for stakeholders.
Beyond the Kaluga facility, Continental is also involved in a joint venture that produces tachographs in Chistopol, reflecting the broader scope of its Russian industrial footprint. In total, the company employed approximately 1,300 people in Russia prior to the exit plan. The decision to leave is portrayed as part of a careful recalibration of the company’s regional exposure and risk profile, rather than a mere withdrawal.
Market observers view Continental’s move within the context of a shifting global landscape where sanctions, energy costs, and supply-chain dynamics have accelerated the reallocation of production assets. The company’s leadership emphasizes responsible governance and compliance as guiding principles during this transition, with a focus on protecting employees, customers, and partners affected by the changes.
As the sale progresses, stakeholders will be watching how the Kaluga factory and the Chistopol venture are integrated into the broader strategic plan. The transition aims to minimize disruption for customers while ensuring continuity of critical product lines through alternative production routes and partners. Overall, the exit represents a turning point in Continental’s geographic footprint, signaling a commitment to long-term profitability and risk management in a rapidly evolving market environment.