Siemens AG, the German engineering giant, announced it is exiting Russia after doing business in the country for 170 years. Siemens is the latest in a long list of firms that have pulled out of Russia following its invasion of Ukraine in February.
The company employs 3,000 people in Russia and has begun winding down its industrial operations and businesses in the country. The company took a high of $625 million in its second quarter financial statement after Russian sanctions.
Siemens had announced in March that it was pausing its business in Russia while they analyzed “the full implication of all sanctions” that had been placed on Russia due to the invasion of Ukraine. At the time the company announced it would continue local service and maintenance.
“We condemn the war in Ukraine and have decided to begin a process of orderly cessation of our industrial business activities in Russia,” Siemens CEO Roland Busch told reporters on Thursday. “This decision was not made lightly, because we bear responsibility for our employees as well as customer relations.”
Siemens and other German companies have had long-standing ties with Russia, which was rooted in the doctrine known as “Wandel durch Handel,” or change through trade. It was thought that economic interaction would bring Russia closer to the West.
When Russia annexed the Crimea in 2014, Siemens was prominent in its calls for keeping communication channels open with Moscow for future negotiations.