Siemens announces exit from joint ventures with Russian Railways

The subsidiary of Siemens produced Lastochka electric trains, freight electric locomotives in Russia, and also served the Sapsan. Siemens Mobility associated its departure from the country with Western sanctions against Moscow ” alt=”Siemens announces withdrawal from joint ventures with Russian Railways” />

Siemens Mobility Company from May 13, it withdraws from all joint ventures with Russian Railways, stops maintenance and terminates contracts with the Russian monopolist. This was reported to TASS in the press service of the Siemens group.

“In view of the magnitude of the European Union sanctions against the Russian Federation, as well as the measures taken and potential retaliatory measures and their serious consequences for the day-to-day operations of Siemens Mobility, the decision was made to wind down business in Russia, including the exit from existing joint ventures and termination of service contracts for maintenance with Russian Railways; from May 13 & raquo;, & mdash; reported by the company.

RBC in the company clarified that the sanctions and the requirements following from them make it “impossible to further fulfill our contractual obligations to Russian Railways.”

«Siemens Mobility»— “daughter” Siemens group. Engaged in the production of rolling stock, electric locomotives, automation and electrification of railways, etc.

In Russia, the company has created a network of depots for the maintenance and repair of Sapsan trains. and Lastochka, while its subsidiaries produce frequency converters and traction motors.

A Russian Railways representative told RBC that the maintenance of Sapsan trains and “Swallow” will continue under the current Russian legislation under the direction and control of the holding.

According to Rollingstock Editor-in-Chief Sergei Belov, the cessation of supplies of Sapsan is unlikely to be critical, and the Russian side will be able to overcome the problems of production and reorientation of supplies during the year. “The current situation creates all the prerequisites for the implementation of a large-scale program for the construction of high-speed lines [high-speed lines] in Russia, according to the experience of China, as a strong measure to support the economy,” — the expert clarified.

Read on RBC Pro Pro Russian foreigners: who will replace the departed fashion brands for Russians Articles Pro Work 12 hours 6 days a week. How it's to Start a Business in China How To Start a Business in China How To Pro Innovative Dictator: How a Putschist Created an Economic Miracle : checklist for employees of IT companies Instructions Pro The EU wants to disconnect Sberbank from SWIFT. What this means for the bank and its stock Predictions Pro Why and how to refuse overtime Articles

According to him, producing “Swallows” and electric locomotives plant “Ural locomotives” has been operating for more than ten years and a fairly high level of localization has been ensured, and a significant part of the intellectual rights already belongs to the Russian side. “Moreover, in recent years, work has been carried out regarding the export of rolling stock— electric locomotives began to be delivered to Kazakhstan, deliveries of Lastochka were in a serious stage of development; to Serbia»,— Belov added.

He also suggested that Siemens Mobility's service personnel would move to either RZD or Sinara. “Siemens will have to pay dearly for withdrawing from all agreements with Russian partners by selling a stake at a very low price, transferring technical documentation, etc., since the Russian side is unlikely to be willing to buy out a share of a partner that does not fulfill its obligations,” — summed up the expert.

RBC sent a request to the press service of the Ministry of Industry and Trade.

Siemens announced its withdrawal from the Russian market “because of the war in Ukraine” 12 May. In early March, the company suspended deliveries to Russia and the work of all new business projects. The Financial Times, citing a source, wrote that the company would continue to perform only “a small amount of service work” in Russia; and that Siemens is assessing the consequences of the sanctions imposed against Russia after the outbreak of hostilities in Ukraine.

Chairman of the Board of JSC “Russian Railways” Oleg Belozerov said on March 22 that Siemens had notified them of the suspension of the contract for the purchase of Sapsan. According to him, the electric trains “Lastochka” “import-substituted by almost 88 percent.” Federation Council Speaker Valentina Matviyenko then said that the German company could be replaced by other organizations. She suggested that the company made the decision under duress.

Siemens has been operating in Russia since 1852— At that time, the company was engaged in laying telegraph lines. According to the FT, today Russia accounts for about 1% of all sales of the conglomerate. In the parent company of the concern in Russia— OOO «Siemens»— employs about 2.7 thousand employees, the turnover in the 2020 fiscal year amounted to €723 million.

After the start of the military operation in Ukraine, many companies announced the suspension of work in Russia, including Nokia, Ericsson, General Electric and others.

Article content Authors Tags Subscribe to RuTube RBC Live broadcasts, videos and recordings of programs on our RuTube channel


Leave a Reply

Your email address will not be published.