Siemens will exit the Russian market in response to the ongoing conflict in Ukraine.
The company initiated a structured wind-down of its production activities. After the war began, Siemens halted all new operations and international deliveries to Russia and Belarus, the firm confirmed in a public statement.
The German conglomerate emphasized that extensive international sanctions and potential countermeasures limit the company’s operations in Russia, notably in rail transport and maintenance services.
It stated that Siemens has chosen to conduct an orderly process to terminate its industrial activities in Russia. This was not an easy call, given the obligation to safeguard employees and preserve long-standing customer relationships in a market in which the company has been present for nearly 170 years, according to Roland Busch, President and CEO of Siemens AG.
Busch added that the impact on the workforce will be assessed and supported as much as possible during the transition.
Busch also noted that humanitarian aid will continue to be provided to colleagues and to the people of Ukraine, aligning with global calls for peace.
The company indicated it would scale back its Russia activities in line with regulatory requirements and ongoing sanctions.
Facing Financial Winds
The choice to leave Russia carried financial implications and was disclosed on a scheduled basis with the second quarter results stay of the fiscal year.
Earlier figures show Siemens reported a net profit of €3.01 billion for the first half of the 2021/22 fiscal year, a 23 percent drop from the previous period. The impact attributed to Russia for the second quarter of 2022 was estimated at €0.6 billion, compared with €0.9 billion in the prior year.
Despite these pressures, Siemens highlighted strong operating results and a robust free cash flow of €1.3 billion. The company explained that portfolio simplification and ongoing supply chain improvements enabled continued progress in the current year’s second half.
Busch remarked that the business remained solid in a challenging environment. The second quarter featured resilient operational performance, with order and revenue growth signaling confidence from customers in digitalisation, automation, and sustainability initiatives.
Siemens continues to focus on core strengths such as smart infrastructure for buildings, distributed energy systems, automated and digitized manufacturing processes, and advanced solutions for rail and road transport.
The Siemens website describes the company as operating across more than 40 cities in Russia and as a major supplier of products, services, and integrated solutions aimed at modernizing essential sectors of the economy and national infrastructure. The workforce in Russia is reported to number around 2,700 employees, with revenue reaching approximately €834 million in fiscal 2021.
Top Employer Recognition
In February, HeadHunter placed Siemens among the top four Russian employers for 2021. The company has also become a favored destination for job seekers. Ekaterina Yanova, the director of human resources, called the distinction an honor and noted that it reflected the company’s focus on employee personality and strengths.
Yanova said that being among leading employers underscores Siemens focus on a people-centric approach, where a supportive and innovative environment, along with ample opportunities for development, aligns with the expectations of future staff. The HeadHunter ranking, compiled annually for more than a decade, underscores Siemens sustained appeal in the Russian job market.