Siemens Energy starts restructuring business in Russia, plans to complete exit in fall

MOSCOW. Aug 8 (Interfax) - Siemens Energy has begun restructuring its business in Russia, and expects to conclude this process by the end of this financial year, the German company said in its financial statement for the third quarter of financial 2022 (April-June).

European Union sanctions began to have a significant impact on the company's business activities in Russia after July 10, making continued operations in the country unviable, Siemens Energy said.

The company said it has taken specific steps for an optimal decision on the restructuring of assets, but did not provide details in the report.

Siemens Energy will lose about 400 million euros of operating income related to Russia in financial 2022. Beyond 2022, the company does not expect serious negative financial impact, Siemens Energy said in a presentation for investors.

Siemens Energy, which was formed in 2022 with the spin-off of Siemens' energy division, is one of the leading suppliers of energy equipment in Russia. The company, in which Siemens was the largest shareholder with 35% as of the end of November 2021, owns Siemens Transformers and a 65% stake in Siemens Gas Turbine Technologies, a joint venture with Russia's Power Machines. Siemens Energy's subsidiary Siemens Gamesa was a partner of Enel Russia on renewable energy projects in Russia.