PARIS, France—Swedish home appliance giant Electrolux and French industrial gas company Air Liquide both announced plans to withdraw from Russia on Friday, the latest foreign firms to leave since Moscow invaded Ukraine.
Electrolux, which suspended its operations in Russia after the invasion, said it had “decided to exit Russia and divest the business to local management through a sale of its Russian subsidiary.”
It said Russia’s invasion and sanctions that followed “have made it impossible for Electrolux to continue its business in the country.”
The Swedish group does not have a production site in Russia, but before the war the country accounted for 1.6 percent of its global turnover.
A provision of 350 million kroner (around $35 million) will be made in third quarter accounts, Electrolux said.
Meanwhile Air Liquide, which employs nearly 720 people in Russia, said it plans to withdraw from Russia by handing over its activities in the country to local managers.
It said its turnover in Russia represents less than one percent of the group’s total, which exceeded 23 billion euros ($23 billion) in 2021.
The company said its activities in the country will no longer be accounted for in the group’s financial results from September 1 “as a consequence of the evolution of the geopolitical context.”
Many major Western companies have pulled out of Russia since Moscow invaded Ukraine on February 24. AFP
More than six months on, other firms have resisted mounting pressure to leave.
In a statement, Air Liquide said it was confirming “its intention to withdraw from Russia.”
“This divestment project to local managers aims to allow an orderly, sustainable and responsible transfer of its activities in Russia, ensuring notably the continuity of oxygen supply to hospitals.
“As a reminder, the Group has previously announced, in the context of the closing of its accounts at June 30, 2022 an exceptional provision of 404 million euros on the Group’s assets in Russia, which has no impact on cash.”
The value of the sale has not been disclosed, and the company said closing the deal remains subject to the approval of Russian authorities.