Following the assessment that business continuity in Russia, in the current situation, is not feasible, Electrolux Professional is to cease its operations in the country. Electrolux Professional therefore divests its operations in Russia to its local management. This will incur a cost of SEK 35m that will be treated as items affecting comparability in the second quarter of 2022.
“Electrolux Professional is respecting all sanctions and export controls to Russia. As a result of the continued war and sanctions, we foresee that we will not be able to sell and service products in Russia medium to long term,” says Alberto Zanata, President and CEO. “Therefore, we have concluded that a controlled divestment of the Group´s subsidiary in Russia to the local management, is the best way to ensure our continued compliance with sanctions, and in a responsible way conclude the relationships with our colleagues in Russia that have been highly regarded team members of our Group for many years.”
Besides the exit cost of SEK 35m, the decision to leave Russia is not expected to have any material effect on the Group’s profit or profitability.
Electrolux Professional has 25 employees in Russia, and in 2021 sales in the country were approximately 1% of Group sales.
Media contact Jacob Broberg, Chief Communication & Investor Relations Officer +46 70 190 00 33