Siemens entity in Russia plans to begin liquidation due to impossibility of continuing operations

MOSCOW. Feb 12 (Interfax) - Systems LLC (formerly Siemens LLC, the Russian entity of Siemens AG) plans to initiate voluntary liquidation in February 2024 due to its inability to continue its normal activities related to the import of goods into Russia, according to the company's reporting for 2023.

In 2023, Systems LLC revenue amounted to 278.8 million rubles compared with 6.32 billion rubles a year earlier. Net loss amounted to 279.6 million rubles. There are almost no assets left on the company's balance sheet except for accounts receivable and cash on accounts (totaling 843.6 million rubles).

The company recalled that due to the EU sanctions against Russia, Siemens AG suspended new orders and deliveries to the country in March 2022.

Siemens AG includes, among others, operations in the field of automation and digitalization for industry, intelligent infrastructure, transportation, and distributed energy systems. In 2020, the company's energy division was split off into the separate company Siemens Energy (as of the end of November 2023, Siemens owned 17%).

Siemens began operating in Russia back in the mid-19th century, and continued operations through the Soviet period.

According to the reporting by Systems LLC, as of the end of 2023, 18 entities affiliated with Siemens AG were registered in Russia. At present, some of them have been liquidated or are in the process of liquidation, and some of them have changed ownership.

For example, in October 2022, PJSC Inter RAO announced the purchase of Siemens Energy's 65% stake in the joint venture with Power Machines - STGT LLC. Furthermore, RAO Intertech B.V. (a Dutch entity of Inter RAO) became the owner of Siemens Energy's Voronezh Transformer LLC plant (formerly Siemens Energy Transformers LLC).