Finland's YIT halts residential construction, purchases of building materials from Russia

ST. PETERSBURG. March 4 (Interfax) - Finnish construction concern YIT is ceasing investments in land and the construction of residential properties in Russia, the press service for YIT said.

"Due to the dramatic changes in geopolitical situation, our business is facing unprecedented challenges in Russia, and our highest priority now is to ensure the health and safety of our employees. In addition, we have sped up the strategic review of the Russian operations we initiated last November and expect to come to a conclusion on an accelerated schedule. At this point, we have active discussions ongoing with several parties," President and CEO of YIT Markku Moilanen was quoted as saying.

YIT's Housing Russia segment earned 204 million euros in revenue in 2021, accounting for 7% of overall revenue, according to the company.

YIT will also no longer buy building materials in Russia.

"YIT has decided that it no longer imports construction materials from Russia. While those purchases can be replaced by alternative materials and sources, YIT estimates that the crisis will have an impact on certain construction material prices globally," it said.

It was reported earlier that YIT was looking at the possibility of selling its Russian business.

YIT is the largest player on the residential construction market in the Northwestern Federal District. According to the SPARK-Interfax analytical system, YIT Saint Petersburg's revenue to Russian Accounting Standards in 2021 rose to 7.8 billion rubles from 6 billion rubles in 2020. Net profit was 0.6 billion rubles.