“We see no solution but to withdraw from Russia” said Christoph VitzthumPresident and CEO of Fazer Group.
“Russia’s attack on Ukraine is an aggression with tragic consequences throughout the region. We have a number of stakeholders and serious consequences to consider, which has not allowed us to break out as we would have liked. We have worked relentlessly and as quickly as possible, taking into account the potential risks and threats. “
The exit will take into account employees and local laws, the company assured. Fazer has previously announced that it will suspend exports to Russia.
The S Group announced on Friday that it has decided to withdraw from the country. The Finnish trade cooperative employs about 1,000 people in its 16 Prisma hypermarkets and three Sokos hotels in St. Petersburg.
The exile from Russia continues:
|
The S Group strongly condemns Russia’s attack on Ukraine concise press release.
The retailer’s turnover in Russia was 9.1 billion rubles in 2020, making it the eighth largest Finnish company in Russia. According to YLE. It’s also deleted all Russian products from the shelves of their grocery stores in Finland.
Many large Finnish companies continue to operate with limited capacity in a war-torn country and condemn Finland’s military offensive. Fortum on Thursday announced It will freeze new investment but will not withdraw from Russia, where it employs 7,000 people at 12 power plants working in partnership with its German subsidiary, Uniper.
Markus RauramoFortum’s CEO told YLE that he was shocked and saddened by Russia’s actions and estimated that the attack would have far-reaching consequences for Russia-Europe relations.
“We can’t stop producing heat and electricity for people, it’s our duty [continue]”He explained to the broadcaster.
Nokian Tires has was revealed that its government has withdrawn its financial guidance this year because of “significant uncertainty” over Russia.
The tire manufacturer said that it had activated its contingency plan to mitigate the effects of the uncertainty on its business, for example by transporting tires closer to customers and relocating production of selected key product lines from Russia to Finland or the United States. Russia accounts for about 80 percent of the company’s annual production. according to the CEO Jukka Moisio.
It added that the relocation of production of certain product families began before the current crisis and covers more important products for markets outside Russia.
On Wednesday, YIT announced that it would accelerate the strategic evaluation of its operations in Russia and added that it would not make land investments or break into new residential properties during the review. The Finnish construction company has generated about seven percent of its turnover from Russia.
“Russia’s military invasion has led to great human distress and suffering in Ukraine, and we have compassion for the people of Ukraine,” stated Markku Moilanen, President and CEO of YIT. “We are deeply shocked by these events.”
UPM and Metso Outotec announced last week that it would suspend supplies to Russia. The decision is particularly significant for the latter, as the technology supplier has received about 10 percent of annual sales from Russia. Metsä Group, on the other hand was revealed It has suspended the operation of its only production unit in Russia, the Svir sawmill, and the procurement of wood in the country, in addition to its sawmill in Finland and Sweden.
Stora Enso, which has received about three percent of its revenue from Russia, announced last week that it would suspend all production and sales in the country for the time being due to the “unworthy” war in Ukraine.
“Ukraine’s war is unacceptable and we are completely behind all sanctions,” said Annica BreskyCEO of Stora Enso.
Valio has announced immediate suspension of exports but did not comment on its production facilities in Russia. Exports account for only about 0.2 per cent of the dairy company’s turnover, as about 95 per cent of its products sold in Russia are manufactured in Russia.
“We are monitoring the situation closely and are ready to make different decisions based on the progress of the situation. We actively monitor assessments and decisions about the situation of policy makers and have developed various scenarios and policies related to them. Elli SiltalaValio’s Executive Vice President, told YLE on Thursday.
Russian products have also been boycotted in Finland. Alko has announced that it has removed Russian vodka from the shelves, while motorists have boycotted the petrol stations of Russian Lukoil distributor Teboil.
Lauri Veijalainen East Office, a company that promotes trade in Russia and Ukraine, reminded Kauppalehti on Saturday said Russia has imposed counter-sanctions that make it harder for foreign companies to withdraw from the country.
“The local management of a company and, at worst, its board and owners could face serious legal consequences from going out of business. This is especially true for companies that produce or operate on their own premises in Russia, ”he told a trade-oriented magazine.
“In practice, companies have three options: to continue operating, to transfer their holdings to a Russian company or to close down. The suspension may be interpreted as intentional bankruptcy. “
Andrei BelousovRussia’s first deputy prime minister said on Friday that companies domiciled in sanctioned countries could only continue to do business in Russia if they provided full support and supplies to their Russian subsidiaries. Investors will also be given the opportunity to transfer their holdings and companies to designated Russian company executives and will be able to reclaim their assets once the sanctions have been lifted. said According to the Russian news agency TASS.
He warned that investors leaving the country directly have driven their subsidiary into “intentional bankruptcy”, a position that could lead to administrative or even criminal liability under Russian insolvency laws.
Criminal liability arises from acts prohibited by law, which include intentional bankruptcy resulting in damage of at least 1.5 million rubles.
Aleksi Teivainen – HT
Source: The Nordic Page