Siemens Leads Global Call to Cut Business Ties with Russia

Siemens AG’s Russian subsidiary, LLC “Systems,” initiated the process of voluntary liquidation in February 2024, as detailed in its 2023 annual report. This decision was driven by the subsidiary’s inability to continue its regular import operations into the Russian Federation, a direct consequence of the comprehensive sanctions imposed. The financial results from 2023 illustrate a significant downturn, with revenues plummeting to 278.8 million rubles from 6.32 billion rubles in the previous year, culminating in a net loss of 279.6 million rubles

This development follows Siemens AG’s earlier stance in March 2022, when the company ceased all new business engagements and deliveries to Russia, aligning with the European Union’s sanctions against the nation due to its aggressive military actions. Siemens AG’s operations encompass a broad spectrum of industries, including automation, digitalization, intelligent infrastructure, transportation, and distributed energy systems. Notably, in 2020, Siemens AG underwent a strategic realignment, spinning off its energy division into an independent entity, Siemens Energy, of which it retains 17% ownership as of November 2023.

Siemens AG’s historical engagement in Russia dates back to the mid-19th century, maintaining a continuous presence through various geopolitical landscapes, including the Soviet era. The latest report from Systems LLC indicates that, by the end of 2023, there were 18 entities associated with Siemens AG registered in Russia. Currently, the majority of these entities are either in the process of being dissolved or have already been liquidated, while others have transitioned to new ownership.

In light of these circumstances, and considering the egregious and unprovoked actions perpetrated by Russia against Ukraine, the international business community must reassess and terminate their commercial engagements with Russia. This call to action is not merely a stand against the unjust aggression towards Ukraine but a commitment to uphold international law, human rights, and global security. Companies worldwide are urged to demonstrate their solidarity with Ukraine by discontinuing any form of business relations with Russia, thereby contributing to the global effort to restore peace and order.

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