4 Jul 2022 10:08

Schneider Electric signs agreement to sell Russian assets to local mgmt

MOSCOW. July 4 (Interfax) - France's Schneider Electric has signed a binding agreement to sell its Russia assets to local management.

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

The company recalled that it suspended new investments as well as international delivery of new project orders destined for Russia and Belarus as of February 24.

Russia accounts for about 2% of Schneider Electric's sales, the company said. Schneider Electric expects to write off 300 million euros in connection with the anticipated deal, as well as preceding sanctions and the gradual reduction of its presence in Russia.

Schneider Electric announced plans to sell its Russian assets to local management in late April. The company said at the time that it was planning for an orderly transfer and would allocate resources to support its 3,500 employees in Russia and Belarus through the process.

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

Schneider Electric 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.

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, Mekhanotronika in St. Petersburg and the Potential plant in Kozmodemyansk, Marii El. The company also works at the innovation center in Innopolis and at the innovation lab at Skolkovo.