The Russian arm of Siemens Energy, branded Neftegaz and Energy LLC, is reportedly preparing to file for bankruptcy at the St. Petersburg Arbitration Court. This information comes from TASS, which references data published in the Unified Federal Register of Bankruptcy Information, also known as Fedresurs. and Fedresurs.
The move is attributed to a combination of long-term operational infeasibility, creditors who are unwilling to resolve disputes, a near halt in business activity, and a lack of profitability that makes ongoing operations unsustainable. The financial strain appears to stem from broader market pressures and the impact of evolving geopolitical events on the energy sector.
Earlier, Siemens decided to exit the Russian market due to the situation in Ukraine, with a related decision in May of the previous year. In October, the company completed the sale of its assets in Russia, including its stake in STGT, as part of wind-down efforts. This sequence of actions underscored a strategic pivot away from the Russian ecosystem amid sanctions and market uncertainty.
Reports indicate that the bankruptcy petition could be withdrawn if there is a restart of supplies and works, accompanied by a creditor agreement on a settlement. This potential outcome would depend on the ability to renegotiate terms and restore working relations with key lenders and partners.
In the same development cycle, Systems LLC, the Russia-based subsidiary of Siemens AG formerly known as Siemens LLC, has announced plans for voluntary liquidation in February 2024 due to difficulties with imports. This development adds to the broader pattern of corporate realignments occurring in the region as companies reassess supply chains and regulatory environments.
Earlier statements from Danish firms indicated a willingness to remain in Russia despite the challenging climate. This contrast highlights the varied strategies adopted by multinational energy players as they navigate the sanctions landscape, domestic policy shifts, and the evolving demand for energy infrastructure in the region.