27 Apr 2022 12:08

Schneider Electric to sell assets in Russia to local management

MOSCOW. April 27 (Interfax) - France's Schneider Electric has announced that it has signed a letter of intent to sell its Russia operations to local management.

The deal is subject to approval by the local authorities, the company said in a press release.

Russia accounts for about 2% of Schneider Electric's sales, the company said.

Schneider Electric said it is planning for an orderly transfer and will allocate resources to support its 3,500 employees in Russia and Belarus through the process.

The company has already put on hold new investments as well as international delivery of new project orders destined for Russia and Belarus since February 24.

Schneider Electric manufactures switchgear, protective equipment and energy automation solutions.

The development of Russian manufacturing was a key part of the company's long-term strategy. Schneider Electric has already invested more than $1 billion in its Russian production facilities, the Russian section on the company's website said.

More than 60% of the products that Schneider Electric supplies to Russian customers are made in Russia at the company's five plants in the country. A wide range of electrical products are manufactured under Schneider Electric licenses by Russian partners in full compliance with world quality standards, the company's website said.

Schneider Electric assets in Russia include the ElektroMonoblok plant in Leningrad Region, which produces low-voltage automation devices, gas-insulated monoblock units and protective relay devices, and Elektroschit in Samara. The company also works at the innovation center in Innopolis and at the innovation lab at Skolkovo.