Siemens says it will quit the Russian market due to the war in Ukraine.

The company said on Thursday, the decision would take a €600 million ($630 million) hit to its business during the second quarter, with more costs to come.

The German industrial and technology group became the latest multinational to announce losses linked to its decision to leave Russia following the February 24 invasion, which Moscow calls a “special military operation.”

Several companies, from brewers Anheuser-Busch InBev and Carlsberg to sportswear maker Adidas, carmaker Renault and several banks have suspended operations in Russia.

Siemens chief executive Roland Busch described the conflict as a turning point in history.

“We, as a company, have clearly and strongly condemned this war,” Mr Busch told reporters. “We’re all moved by the war as human beings. And financial figures must take a back seat in the face of the tragedy. Nevertheless, like many other companies, we’re feeling the impact on our business.”

Mr Busch said further impacts were to be expected, mainly from non-cash charges related to the winding-down of legal entities, revaluation of financial assets and restructuring costs.

“From today’s perspective, we foresee further potential risks for net income in the low- to mid-triple-digit million ranges, although we can’t define an exact timeframe,” he added.

Siemens shares dropped five per cent in early trading as the company missed analysts’ expectations for second- quarter profit.

Siemens employs 3,000 people in Russia, where it has been active for 170 years. It first went to Russia in 1851 to deliver devices for the telegraph line between Moscow and St. Petersburg.

The country now contributes about one per cent of Siemens’ annual revenue, with most of the present-day business concerned with maintenance and service work on high-speed trains.

“Its sites in Moscow and St. Petersburg are now being ramped down,” Mr Busch said. 

(Reuters/NAN)