Siemens' Closure Impact of Russia Exit on German Business Relations

13 Feb, 2024

Siemens' Closure Impact of Russia Exit on German Business Relations

A Russian Railways Desiro train by Siemens was prominently showcased at the Innotrans 2012 International Trade Fair for Transport and Mobility in Berlin.

Siemens, in its final financial report for 2023, disclosed its decision to close its operations in Russia, citing an untenable business environment. The report also indicated the initiation of voluntary liquidation proceedings. According to The Moscow Times' report on February 12, 2023, Systems LLC, Siemens' Russian subsidiary, witnessed a significant decline in revenue, plummeting from approximately 6.3 billion rubles ($3 million) in the preceding year to about 279 million rubles.

Notably, the company's balance sheet showcased a dearth of assets. The decline in financial performance coincided with Siemens' decision to halt new orders and supplies to Russia in March 2022. This cessation of operations aligned with EU sanctions imposed following Russia's invasion of Ukraine.

Siemens' withdrawal from the Russian market underscores the broader implications of geopolitical tensions on multinational corporations, emphasizing the intricate interplay between politics and business strategies in today's global landscape.