Schneider Electric has announced that it will sell its Schneider Electric Russia operations to the local management.
The brief announcement says it will "allocate resources to support" the 3,500 employees who work in Russia and Belarus. The transfer is subject to the approval of local authorities.
The company says Russia generates some two percent of its global sales, although it has previously put effort into expanding there. It held regular events in Moscow as part of its global Innovation Summit series, and reported that the 2021 Moscow event was its largest Innovation Summit ever.
However, since Russia's invasion of Ukraine, it has pulled back. New investments have been on hold since 24 February 2022, and the company also stopped international delivery of new project orders destined for Russia and Belarus.
"After careful review of its set up and options, Schneider Electric is today announcing it has signed a Letter of Intent to sell its Schneider Electric Russia operations to the local leadership team," said an announcement last week.
As a result of the sale and wind-down of its presence in Russia, the company has predicted it will write off up to €300 million ($317m) of net book value, and make a non-cash reversal of the currency translation reserve associated with these activities currently estimated at €120 million ($127m).
Schneider Electric is planning for an "orderly transfer," says the company's statement.
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