8 Apr 2022 17:59

Volvo Group assesses losses connected to military op in Ukraine, sanctions against Russia at $420 mln

MOSCOW. April 8 (Interfax) - Swedish truck and custom vehicles producer Volvo Group has assessed its losses from suspension of operations in Russia in Q1 at approximately $420 million, the company said in a statement.

Since events in Ukraine began and "sanctions were imposed, all sales, service, and production in Russia have been suspended," the statement said. "In the first quarter 2022, assets amounting to approximately SEK 4 billion [over $420 million] will be provided for and have a negative impact on operating income, primarily in the Financial Services segment," it said.

The company's factory in Kaluga suspended operations at the beginning of March over the inability to import component parts.

"The Volvo Group has total assets of approximately SEK 9 billion [over $950 million] related to Russia, of which approximately SEK 6 billion [over $630 million] is cash items that could be materialized over the coming years," the statement said.

"In 2021, approximately 3% of the Group's net sales were attributable to Russia," it said.

According to information on the website of Volvo Group's Russian business, it sold 5,692 new trucks last year, up 31% year-on-year.

Volvo Group is implementing several projects at the Kaluga South Industrial Park, including a Volvo truck factory, service center Volvo Truck Center Kaluga, a Volvo customs department, a Volvo Construction Equipment factory, and Volvo Group Cab Factory to produce truck cabs for Volvo and Renault.