When Russia invaded Ukraine, Wärtsilä condemned the war and suspended deliveries, sales, orders and bidding in Russia. The company announced today that it is further downscaling Russia operations as, “it is not viable for Wärtsilä to maintain activities in Russia.”
As a consequence, Wärtsilä will make provisions totalling €200m in its Q1 2022 results which are due April 28. The provisions comprise €75m of goodwill and intangible assets related to Wärtsilä Voyage, €75m of write-offs due to trade-sanctioned projects and receivables and €50m of Russian asset impairments.
Wärtsilä said Russia activities account for around 5% of its net sales in 2021, with around €40m of service net sales.
Wärtsilä said in March that its assets in Russia were mostly office and service facilities, that its procurement from Russia was insignificant and that it had no production in Russia.
Before entering the silent period ahead of its results publication, Wärtsilä said it had faced challenges in site access in China due to Covid restrictions, and that availability of electrical components was tricky.
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