2 Sep 2022 15:08

Electrolux leaving Russian market, to sell business to local management

STOCKHOLM. Sept 2 (Interfax) - Sweden's Electrolux AB, one of the world's leading manufacturers of home appliances, has decided to withdraw from the Russian market and sell its Russian business to local management, the company said in a statement.

The spun-off company will continue to service Electrolux products previously sold in Russia. Electrolux itself does not manufacture products in Russia and will not supply its products to the Russian company, the statement said.

Electrolux said that its withdrawal was prompted by the fact that Russia's military operation in Ukraine and sanctions imposed on Russia "made it impossible to continue business in the country."

One-time losses by the company due to withdrawal from Russia will amount to 350 million Swedish kronor ($32.4 million), which will be reflected in statements for Q3 2022.

In 2021, Russia accounted for 4% of European sales of Electrolux and 1.6% of global sales.

Electrolux Professional, a subsidiary of Electrolux, which manufactures professional equipment, announced its departure from Russia in July.

Electrolux shares are stable in Stockholm trading on Friday. Since the beginning of this year, they have fallen 41%.